Oil looks like latex paint!!!!

[vick97psd]

Ok so i traded my 99 4cyl ranger to a buddy of mine at work for a 97 F-350 cc lb 4x4 7.3 w/ 263,000 miles he had a problem with oil in the water and took it to a reputable local shop where they changed the oil cooler and as i takes time to flush all the water from this extravagant oil system he had a water leak i looked at the truck and his water pump was leaking so he changed the pump well the leak got worse and done the motor ended up with so much water mixing with the oil it filled up a small kiddie pool from wal-mart

[vick97psd]

Turns out there was a crack he said behind the water pump well i have he truck and after getting everything back on he and some friends were getting ready to pull it and as i planned to do i pulled the pump to grind down the epoxy and take a look well looks like the aluminum was pitted and went all the way thru so i re-epoxied over it put everything back together and before toasting a filter and nearly $100 in oil i filled the system with water set the regulator on my compressor to around 10-15 psi (below the 16 psi it runs at) and put some pressure to it i cant see anything leaking behind the pump i have the hpop reservoir removed no leaks but about 5 minutes later i happen to look under truck to grab a dropped tool and there is water coming out of the oil pan drain hole any ideas on what it could be. I have a few but just dont wanna think that way because i wanna get the truck on the road