I am only a couple of years into owning a C-27 with a universal 5411 and, therefore, still quite the novice. Last year I had diesel getting into the oil along with some very fine metal fragments...kind of like powder...from the fuel pump. It made the oil gray and thin. It wasn't very expensive to have the mechanic fix it but the pump was on back order for 9 weeks....JUNE-JULY!!! I have not seen what water looks like in oil but have heard it has a foamy and milky appearance.
Dave Tierney

