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96 XP with 787 engine - Water in lower end of engine while doing top end...

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Hi, looking for some advice.

My 96XP 787 engine suddenly died at full throttle. I took apart the top end to see the damage with engine still in hull. The PTO rave valve hit the piston ring which killed the compression. No damage to piston wall, but the ring melted to the piston. Compression 140 mag, 30 pto.

The top end was previously redone, the pistons are Wiseco 661P4 1.0mm. I was thinking about just buying another piston kit and gasket kit, and putting it back together - and shaving the rave valve a bit to prevent it hitting again.

However, with the top end off, I noticed water in the lower end of engine, so assuming the shaft seal is shot. Does that mean I'm toast? Can I fix the top end and not do the lower end shaft seal? That may be beyond my abilities. Thanks.
 
There is no shaft seal that keeps water out of the bottom end.

If it is just a little bit it is from the cylinders when you pulled them off and the gasket tore.
 
Soak up what you can with a paper towel then give the crank bearings a little 2-stroke oil for good measure.
 
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