2005 22V Rough Idle and Water in Oil!!!

[Sluggo]

It has been a while since I have been on here, but did a quick search and did not really find too much about my situation unless this is coincidentally two issues happening at once.

Boat does not get used very much the last few years but we do manage to get a long weekend in each year and maybe 3-5 day trips. I have done the winterization myself via instructions from this site, so it has had fresh oil, filter, and antifreeze in it each year without issues. The only thing I would consider being abnormal of the last few years is that when we surf, the idle tends to surge when in gear to circle around to get a fallen rider. We usually have a pretty big list give people and ballast. When weighted evenly, no issue with idle. Also noticed a little steam now and then from the exhaust while surfing. The temp gauge never rises and always stays in the normal range so I didn't give it a second thought.

Anyway, 520 hours on the original engine, annual winterization with oil changes. Cap and rotor, plugs, and wires were all just replaced along with removing and cleaning the injectors trying to resolved the rough idle condition when I noticed water in oil. I just got some more time today and did a compression test and the results are in the pick below.

So my initial thought was I have a blow head gasket somehow and when I went to confirm that with a compression test, it came back what seems to me as normal for a cold engine that has not run in three weeks. Or is that not a good assumption? Can an intake gasket cause a rough idle condition? Given the I will be at least looking at removing the intake, should I go ahead and tear down the heads and get them resurfaced and cleaned up to try and get my compression back up closer to 200 or just wait until a full rebuild is required with new rings etc...

Also considering doing all this work over the winter, so I have drained the block, the cross over hose and heater lines. Do I need to blow some air through there to force more of the water out? I usually run antifreeze through it but I don't want to run it again with contaminated oil. Guess I could change the oil and run it long enough to get antifreeze through it?

Any all advice welcome...