[rotorwrench]

The car was likely used for mostly short trips where the engine didn't fully warm up to operating temperature. Engines used this way get sludged up bad if operated for long periods like that. The water in the cylinder could have been coolant. If it was then there is likely coolant in the pan too.

Climate of long term storage has a lot to do with condition of engine internals. A well stored car would have had less corrosion but could've still had some depending on temperature changes and relative humidity. I've seen a lot worse but the cylinder could be a candidate for resleeve. The cylinder walls on the old 221s are not all that thick. Whether it is a large bearing engine (LB) or an older poured babbitt engine will be the thing a person needs to know.