Getting serious again, I have been following this thread from its beginning. If it were mine, I would be very concerned about the connecting rods and bearings with that much water in the cylinders. Water does not compress so something else has to. I have seen marine engines with connecting rods twisted and bearings crushed from water inversion through the exhaust system. This with water seeping into only one or two cylinders, I can only imagine the damage caused by water in all 8 cylinders.
I hate to be a harbinger of bad news but I think finding where the water is coming from is not going to be the end of this story.