If I seen water in my oil I would instantly tear it down at least to the top of the piston. This is very cheap aned would probably answer your question. You can do this with the motor still in the bike.

 

If yours is an 05 or 06, they are doomed with the problem that suzuki made the clutch/coolant covers of magnesium. These covers are known to corrode at very quick rates, even with the manufacturer's provided fluid. The 03/04's dont ahve these problems but do have a rep for frames cracking. Take your choice... It is really ashame for such a nice bike to be stuck with these annoying probs. Suzuki will probably be making a recall soon as they are aware of it. I have heard of people installing 03/04 aluminum covers on their 05/06's. This should fix ur prob. I suggest not riding again til u fix it, jus drain it and replace the caps. Hopefully you have some kind of warranty. I am also pinned with the problem that I know that one day mine will leak too. I jus bought an 05 about a month ago. Plan on gettin it in on my warranty still.

Hope this helps, also look for the other posts on cover corrosion.

 

if its an 05 or up, check ^^, if not, check if there are bubbles in the cooling system, this usually indicates a blown head gasket.

 

hi....i just wane find out....i have found water in my oil and the oil has bubels in it and the oil is grey.....just wane know what is it