Hello everyone, it's been a few years since I've posted on here and it's good to be back! I have a similar question to the post about the water in the oil, but have a slightly longer story. About 20 years ago, my dad bought a 400 diesel as a parts tractor as we have another operational 400 diesel, it hadn't ran for years before, but was kept inside. He parked it outside since then, but kept it covered with a tarp etc. When he bought it, they said it was getting water in the oil, and they believed (or assumed) that it had a cracked block. Fast forward to 2017, we recently built a 40x80 shed and decided it was time to tear the old girl apart and see what we actually have. I (now 25) thought maybe the issue was with the head since the gas diesels are notorious for cracking heads. As I took the valve cover off, it occurred to me that this was the cleanest engine I've ever had apart. So we took the head to a local machine shop and had it magnafluxed and pressure checked and the head is fine. However when I took it off, the head was not torqued down real tight, I took the head bolts off with a 1/2" breaker bar and little effort. The engine is also locked up, so while the head was off I started to work on breaking that free. I pulled the oil pan to make sure it wasn't a mess inside, no sludge at all. Next I soaked the cylinders with PB Blaster and every few days would take a 2x4 and hammer to tap the cylinders. I also tried rocking the tractor back and forth with it in gear to move it. When I rocked the tractor (by hand) it popped the 3rd sleeve up about 1/4". Which I easily tapped back down with a rubber mallet. Figuring at this point the block is a lost cause, I took a 30" adjustable and put it on the nut at the end of the crankshaft and could turn the engine. While turning it, it would pull the sleeve up roughly half an inch on the up stroke and again I could easily tap it back down. So now to my questions.... What am I missing here? Since these are dry sleeves, would a loose sleeve cause the water in the oil issue, or am I still looking at a cracked block? Why would the sleeve be loose and is it ruined? I'm not paying two grand for an overhaul kit for a parts tractor we pulled out of the weeds. If the sleeve is ruined, I'll park it in the back of the shed and use it for parts for our good 400. One final thought I have about the tractor. Being that everything is so clean inside, is it possible that the previous owners overhauled the tractors and messed something up causing the water in the oil problem? It just seems strange for a tractor that's 60 years old to be dang near spotless inside. Is it something simple that I'm overlooking? Thanks in advance for you time and responses.