Thanks for the hints and tips about the oily water situation I got myself into. I appreciated the comments and the moral support as my truck was sick.
I hadn't had time to work on the truck since early September due to the birth of our new baby girl!

(#7, I wish Dodge made a 9 passenger Cummins Ram!)
Anyway, I pulled the head and cylinder 1 had about 1" of rusty goo in it.

the head had rusted a little next to the valves as well. Three cylinders have scored walls, #1 worst. I can move the piston side to side by hand. It looks like the surface had bounced something around in there for a while at some point. While taking everything apart, there were oil puddles in the IC boots, how much oil should be coming from the turbo? Is it toasting too? I removed it from the 21cm housing and was going to put on my brand new 16cm housing from Piers until I saw the big picture.
I don't have the facilities, time , or $$ right now to do a full overhaul or get a rebuilt engine. It will cost me as much as I paid for the truck to fix it now.
Unfortunately my discrecionary funds are pretty spent. I just put it back together and parked it in the boneyard for now (parked it where the 77 Frd Crew was that I had to resurrect today.) Now I have to try do decide the best course of action.
#1 Sell truck (good, solid, bad paint but no rust, good interior, .......) and take my losses and count it toward the great education she's given me. Buy another when I can and/or convert the 77 Frd 4 door to CTD. (What could one get for a decent 92 W350 single wheel with a buildable core as an engine ?)
#2 Wait and rebuild engine later
#3 Keep an eye out for a donor truck when funding allows. Maybe 2nd gen for the comfy stuff to stick in along with the VP.
I still have hope of building ~350 HP in my cummins. I live in a Frd town.
Thanks again for all your help and all you have taught me!!
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257/632 191/472 w/keyed Valet off
92 W350
Getrag,Detroit & 3.54, 4"/2" lift,PSC Hydrosteer, 35" BFG KM2s
HTT Stage II, POD's, Jardine 4", PDR cam, KDP, 366, Pin ground
Isspro Pyro, Boost in Message Center, Isspro tach, Damplifier-ed cab, Dual Batts, Keyless Entry, LED's in dash