ZX7 Won't Start

We have taken a 2001 ZX7 engine out of the bike and put it in a mini sprint. And since we are the only ones with a Kawi in the club its hard to get help. Especially since the bike dealers just look at you funny when you ask for a little help...

Anyway, here's our latest problem. The second practice session Sunday afternoon the engine quit running. We were taking the car back to the pits when the engine slowed down, then came to a stop. The rear end of the car kicked out and the engine would not refire. We had a little loss of water from around the water pump. The engine temp was 210 degrees. The oil level was up slightly from before. Checked the plugs and they were dry as a bone. Pulled the water pump off and found rust particals & corrosion inside the pump. The impeller took some effort to turn. Cleaned it all up and put it back together. Tried to crank it up but the engine won't turn over...We did reduce the oil pan & oil pick up by 2 or 3 inches for ground clearance. I'm wondering if we didn't have enough oil in it (even though the glass showed between the marks) that we burned up the oil pump...

Any suggestions as to what to look for and where to start? Thanks!