The orange color(rust, ie. water) of the valves and combustion chamber definately indicate a strong presents of water. Note the total absence of any carbon traces on the chambers and valves.....
That could have also led to the piston galling by washing all the oil off of the cylinder. Magnaflux the head for sure, and make sure the deck surfaces on the block and head are resurfaced also, especially after running it hot like you said.
