Update:

Well we did everything we could to it over the weekend and we were able to do a compression test on it and it was not good. We got on average about 10psi per cylinder. After that we pulled the engine and foud a nice long crack running down the backside of the block (hot metal + cold water dont mix to well). We also foud about a gallon of water sitting in variouse parts of the truck. It's just not worth it anymore to attempt to try and fix it.

Luckily though it was not a complete waste. We put a "Parts for Sale" sign on it sunday nightand in big bold letters we wrote "SEVER WATER DAMAGE" on it soeveryone knew what they would be getting intoand by monday we were parting it out. We donated the engine to a highschool auto shop class (they use engines like this to help teach students how to rebuild them), Sold the front and rear for about $200 for both, one of my dads neighbors came by and bought the the body for $1,000. He wanted just the shell for his dirt rig he's building, and then we sold all minor items to variouse people for about $5 per box. so it worked out alright and she now has a little over $1300 to help towards a new truck. And as of 10min ago someone wanted to use the parts from the tranny so it was sold for about $50.

So heres the tally:
She bought it a few months back for $4,000
Put over $1700 into excessories
Parted it out after 1 very stupid mistake for$1350

Total Loss: $4,350

I really hope she learned alot from this. And thank you all for all of your help and advise.

 

Sorry to hear that it was unsalvageable.

 

To bad it did not work out for you, but I do bet you had a blast tearing into that thing and laughing when you found all that was wrong.