Think my Ruston & Hornsby 2VTH may be dead...

This is the engine in my boat. It has been getting more smokey and also blowing exhaust out of the oil filler. On closer inspection yesterday we saw oil in the air breather pipe. Stripping it down; one cylinder has been getting water in it, it needs new liners, new rings and the crank bearings are scratched. It probably needs coming out for serious work, though I'm not sure whether the costs will mean it's look for another engine time.. The chap helping me strip it is checking whether the head is cracked... but he is also concerned that the crank will need more regrinding for which the engine will need to go with it..

The problem is getting the lump out, and then another lump in, there isn't that much room.. I could do with replacing it with a 1VSH as that would fit better..