Yes, this is important to understand the full situation. If that were me, I'd replace all the injectors once you're sure the fuel system is clean, clean, with Bosch type III 24lb injectors (new). $440 is small price compared to engine rebuild costs due to a bent connecting rod or worse. I'm actually concerned a bit that it hydro-locked twice on you already, but I'm keeping my fingers crossed that it didn't kill the motor. Fuel in the oil is bad news so you may be there already, but you already know that. Your call to make here on next course of action based on all the feedback. I'll keep positive thoughts.

 

Just to give you a bit more perspective on this car, I bought it non running on Aug 2nd of this year with 103k miles on it. It had been stored improperly in a barn for 3 years. Prior to that it had been driven less than 1000 miles in 11 years. The paint on the body is amazing and original and the interior is very nice. But underneath that pretty face, it's a mess. The fuel system needed everything. The fuel pump and hanger were shot. The bottom of the gas tank was covered with rusty gunk and lots of water. The fuel rail and original injectors were full of the rust/water mixture, also.
So this is as far as I've advanced in getting it fully functional. There is a long list of things that don't work, but I guess that's what I signed up for when I bought it.

 

Well one thing is for sure. It was a hell of a waste to have it sitting there doing nothing, particularly since it's a CE, and you working on the car and getting it running is a good thing.

 

Not wanting to leave this thread hanging with no conclusion, I've discovered a couple of things that point to the reason for this cylinder flooding. First, I changed the fuel filter and cut it open and saw a small amount of debris on the input side and none on the output side. I believe the fuel filter was doing it's job, so I move up towards the engine. I removed the fuel rail and began flushing it. There was debris in the fuel rail, so I must have not gotten it as clean as it needed to be, the first time I had cleaned it. This time I took a lot of extra time to try to make sure it was as clean as I could get it. Next I back flushed the injectors with carb cleaner to flush out the input side screens. I saw debris coming out of several of the injectors. By the way, these were brand new Accel 26 lb injectors which replaced the originals that were contaminated with water and rust debris. This all leads up to the conclusion. When I assembled everything and pressurized the fuel system, I saw fuel running out of the vacuum port of the Holley adjustable fuel pressure regulator. I had forgotten to attach the vacuum hose to the regulator. If I had attached the hose, I would have not discovered the blown diaphragm in the regulator and a repeat of the flooding would have occurred. I believe this is the primary cause of the flooding. The failure of a simple rubber diaphragm in a fuel pressure regulator can cause major problems.

There's more...
Once I saw the reason for the dumping of fuel, I wanted to quickly replace the Holley regulator with a new OEM regulator that I had. Since the fuel rail was still lifted, I removed the Holley and installed the other regulator. In the process, a small spacer washer dropped out and may have fallen into an open injector port in the intake manifold. I looked and could not find the washer, so I can only make the assumption that it went into the intake. I tried using a magnet and came up empty. Then I tried a tube attached to a hand vacuum to get it out. Suddenly I saw fuel being sucked up, from the floor of the intake. I didn't expect the fuel to be there, so in retrospect, it was not a good idea. Fuel in an electric vacuum is a bad idea and can be dangerous. In any case the washer was not found.
Looking at this situation rationally, I decided that the best course of action now, is to remove the intake and make sure that the washer is either there or not. In either case, knowing that, I will feel secure in starting the LT4 when the time comes.

This leaves me with a question for y'all. What are you guys using for fuel pressure regulators? Stock? If not stock, what adjustable regulators are being used? As far as I can tell, the Holley adjustable is the only one that will install into the original fuel rail fittings. Anything else will be a pain to plumb into the stock fuel rail.