Re: 8BA block cracked
You should post pictures of the deck surface and highlight/point to where the cracks are. There are plenty of flathead blocks with cracks between a couple studs and the water jackets - in areas that are NOT a concern.
Question: What do the tops of the pistons look like? Are any of them "washed" from water getting into the combustion chambers? Do you see any signs of water having been in the chambers?
If not, then the water in your oil did not come from a crack that allowed water to get into the pistons/chambers . . . and then down into the oil.
There are multiple ways that water can get into the oil pan . . . and as 21Stud noted, one of the more common ways is via a crack in the oil-pan mounting rail. This is usually a result of freezing.
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