the interesting thing when you disassemble an engine is that you always find wrong stuff you will have to repair/change.
Here is what i found on mine.
- 1 Dead rod bearing
- 1 Dead main journal bearing
- 1 Dead side bearing
place to the pics:
Overall wiew in the block:

Dead surface ... has to be remachined:

Dead side shell:

Should it be remachined or just polished with oil and sandpaper ... ?

Any of you experienced such thing ?
Just a comment, never run your engine when oil mix with water !
This is the result ....