Hi All,
I own a Bayliner with a V8 OMC 5L engine. I noticed, when running the engine
with hose attached, that the exhaust fumes contain quite a lot of steam.
That was only when the outdrive was not fully at 90 degree extension (about
70 degrees). What was coming out of the propeller was steam and very warm
water. The engine seemed to get to this point after about 2 min. That seemed
unusually fast for me to start producing steam. After shutting the engine
down there was quite a bit of steam coming out (like a big steam puff).Tried
with fully extended outdrive and it seemed to be better. Water coming out
was a notch cooler and not much steam could be seen. I wasn't sure and
started suspecting blown head gasket or a block crack (God forbid...!). I
just tested compression on all cylinders and it looks like that: cyl.
2,4,6,8 - 150/140/170/160 cyl. 1,3,5,7 - 150/155/155/160. Before winterizing
I noticed a bit of water spray when cranking without spark plugs coming out
of cyl.4. I thought that it was rain water that somehow made its way into
the cyl.4 through uncovered carb. Presence of water in cyl. 4 plus slightly
lower compression would indicate something is wrong here. But in this case
wouldn't my reading be lower then 140? Seems pretty close to normal reading.

What else could or should I expect in terms of "surprises"?
Is compression test a good way to diagnose blown head gasket or are there
better ways to find out?
Are my assumptions right? What is the most likely scenario (best and worst
case) in tearms of possible upcoming repairs?
How else can I find out about my engine condition before taking it apart?

PS. the engine starts and runs OK, just like nothing happened.