An old school diesel mechanic once told me that if water got past the IP it could cause the tip of the fuel injector to blow off (the steam thing)...
Interesting...
I spent about 2 hours last night trying to get to the root of the water in fuel issue as it applies to C-I engines, and I came up with "theories" that traveled in two different directions:
The fuel additive companies (Stanadyne, etal), and the engineering textbooks on my shelf, all seemed to be interested in the abrasive qualities of water in the 10 to 40 micron particle size range, and the corrosive properties of water in general, and the hear-say group (not meant derisively: my buddy the mechanic, this chief I knew, somebody once told me...) seemed to like the idea that water blew the tips off of injectors.
Everyone likes stories of explosions, so I guess exploding injector tips fit in that category.
The "fuel experts" (additive companies...) concentrated on corrosion caused by free water droplets, water's (in quantity) ability to stop an engine dead by preventing fuel from getting into the cylinder, and water's abrasive qualities when the droplets are the right size, and under hydraulic system pressures. Their cure to water was to fracture the water droplets to such a small size that they are no longer abrasive, and will pass out the tailpipe as steam.
As to the hear-say group's conjecture that water blows the tips off of the injectors:
We all have quite a bit of experience with water and steam, whether we know it or not. The pressure cooker your mother used demonstrated an interesting property of water and steam and that is it will increase in temperature when you allow it to increase in pressure... that is to say that if you keep water under pressure, the temperature needed to turn it into steam will increase greatly.
A fuel injector nozzle has a valve in it that is designed to hold the nozzle shut until the pressure rises to the pop-off pressure where the valve spontaneously opens, and then as the pressure again drops, it will seal off the nozzle (to prevent drips...). If steam were to form in the injector, it would simply cause the valve to pop-open and release the pressure.... right?
In any case, my study did quite a lot to enforce my belief that the only problems with water in your fuel are corrosion, abrasion, and possibly the complete elimination of combustion (all water).
-Chuck