Running the engine will homoginize the water/oil until it has time to settle out. I'd say that could possibly take a week.
Did I see bubbles in your radiator fluid shot?
Otherwise things look just fine. As I said, there is not that much water in that oil and the oil is clean. That speaks volumes. Usually you could use it for black paint.
I hear you on helping the guy out, but that is a gift of charity, not common sense, so are you prepared for that?