Water doesn't lubricate bearings as effective as oil. If it ran a little with water in it, there may have been some damage to the bearings. I just ripped apart a 3.0 that had been in a similar situation and all of the rod bearings were toast. (somehow the main bearings were fine) If you can get the oil pan off without too much trouble you may want to check atleast the rod bearings if it makes any funny knocking sounds when you do get it to run. The 3.0 I ripped apart could have been saved by rolling in new bearings before the po. ran it and killed it.

Just something to think about once you do get it to fire up.

Hey at least it isnt seized! Hopefully all of the rods are fine.