2.3SOHC Water in the oli

Got this car thinking it had a blown head gasket. Put a new gasket back on and got everything back together. Starts fine but after a few seconds oli starts shooting out of the oil/ air seperator. Couldn`t get the heater tube to fit back into the seperator. Went to drian the oil again and it is full of water. Should have had the head checked but I didn`t. Is there anything else at all could let water into the oil? It also smoked like crazy when it first started then it died down some. Light grayish blue smoke. Could the block be bad or the rings. I am about to give up. Please someone reply soon.

It's either a bad head, bad head gasket, or a crack in the block. Are you sure you torqued the head down properly and used a graphite head gasket?

It's either a bad head, bad head gasket, or a crack in the block. Are you sure you torqued the head down properly and used a graphite head gasket?
Thanks for the reply. Yes I assume I torqued it right. I tightened them until the wrench clicked and then did the 90 degree thing. It was a felpro gasket. It was like the water somehow went directly into the oil. I barely loosened the drain plug and water trickled out for awhile and then milky looking oil came out. Is there anyway to know if it is the block without tearing it back apart? Probably a dumb question but I do not much about cars. Could it be the water pump? I bought the car half tore apart. It needed a heater core I was told and I did that. The hoses confused me. I put the hose from the water pump to the heater core and the other heater connector to the thermastat housing. Was this correct?

Yes your heater hoses are right, and check your waterpump. Its possible the pump is defective and that would cause water and oil to mix, and might even cause oil to come out the oil/air separator.