Yikes. The engine is full of water.
The following may sound silly, but bare with me. It's saved my butt before...
Once you get everything back together, you'll want to get the water out of there. Drain the oil, install the cheapest oil filter you can find, and fill the engine with a gallon of diesel (that's right). With the spark plugs out and the injector harness uplugged (unplug the dizzy too), crank the engine for 10-15 seconds. Let it sit for a couple of minutes (to let the starter cool) and then repeat 3 or 4 times. Drain the diesel. Fill the engine again with another gallon of diesel and repeat the cranking process several times. Afterward, drain the diesel, replace the oil filter, and fill the engine with the cheapest oil you can find. Reconnect everything, run the engine, and lightly drive the car around for a bit. Replace the oil and filter again (you read right, 3 oil filters total) and you should be good.
Diesel, having a lower viscosity than oil, will displace the water that can be trapped within the engine. Flush it twice with diesel, then again with cheap oil to remove most of the diesel. Water will kill the pistons rings, bearings...anything made of steel inside the engine. I performed this on the Challenge Miata when the turbo failed and loaded the engine with water on the initial build. I've never had a problem since.
