Just to be clear, with the ski out of the water and a hose providing a water supply, the engine bay filled with water from what seemed to be from where the driveshaft comes out of the engine. What would cause this?

 

Thanks for all the replies! LoL - No worries, after learning a thing or two by reading on the forum and on line and a little trial and error, I realized the PO turned the water on to soon at start and on full blast when he first showed it to me. I got er home, took the plugs out ran it to get all the water out a few times and sprayed some lube into the cylinders to ensure a nice lube and prevent any rusting. Attached the hose, started the ski, started the water on low pressure and no water in the engine! She runs like a charm!! Now for this water to get just a bit nicer and the water temp to raise just a little bit and we'll be enjoying life!

 

Have fun with your toys!

 

You have the correct "on the hose" test sequence now. And I don't want to rain on your parade, but I'd be a little worried about possible damage from the earlier attempts. Forced (on the hose) cooling without the engine running can put water into the crankcase & cylinders. If there is too much water, the engine hydrolocks and damage can result. But if it cranked over OK, then it was never hydrolocked. But still, water in the crankcase can raise pressure when the piston goes down toward the crank. If high enough pressure was created to force water out the crankshaft seal, there might be crankcase seal damge. That will allow air to enter thru the seal during normal running.... this results in a lean condition and can overheat a piston. You really should pressure test the engine. I know that is a bit of a task for the average backyard mechanic, so at least you should monitor the temperature, and spark plug condition (for tell-tale overheat lean conditions) during your first few runs under real operating lake conditions.