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In regards to axle seals, always check that the inner diameter of the seal fits snugly on the seal run surface. Sometimes the inner diameter may be wrong and too large from wrong packaging.
Try to hook it up to an 6 gallon outboard tank for a trial run. As already posted, there is a good chance either the rubber fuel is collapsing or the screen in the tank suction tube is plugged.
You just have to pry it off. There is a burr that the set screw caused on the spline. Be careful when reinstalling the set screw, it is possible to collapse the outer spline which will bind up the warm up pull out knob.
Is the timing set? There should be no dribbling at idle on any carburetor fueled engine. You need to start making sure the carburetor is clean with a rebuild kit. Also check that the throttle shaft is not twisted and the blades close tight in the body. 1to 1.5 turns on the idle stop screw...
Next time try adding a jumper wire from the + or bat on the coil to the + battery terminal before you try to start. If it starts better than the bypass circuit from the started solenoid is not active.
It could be the boost solenoid. It will have a small yellow/red wire from the start side of the ignition switch with a #10 Y/R going to the main starter solenoid, #10 red wire should have 12 volts and possibly a small purple/black or black.
Since the engine heats up on plane 1of the 2 areas will probably be the cause. Especially if air bubbles show in the clear hose test.
The hose connection nipple or the ”O”ring that seals the lower gear housing to the suspension fork. Both jobs are easy and just standard fractional socket head...
These are the Sierra Marine part #s for replacing the manifold.
18-1930-2. Manifold
18-2991-1. Gaskets
18-8539. Mounting kit
18-3889. Seals
When you contact Sierra double check what is included with the manifold.
Items ending in 91-39 may come with the manifold. Be sure to order the seals...
The manifold has to come off, it may be possible that the inner bore for the core plug is eroded. If that is the original manifold it needs replacing. The inside of the manifold at the exhaust outlet by now will be also eroded.
The pump is on the front of the crankshaft. Most times the pump is not the problem but it must be checked first. It is held on with 3 bolts on the crankshaft pulley. Post a side profile of the drive unit as there are 2 other places that can cause an overheat condition.
Mercruiser recommends when a belt driven pump is used with fresh water cooling to connect the incoming water from the drive to the raw water through hull intake in a “Y” connection. This way the engine can be ran with the ear muff on the drive. I did the exact same thing on the Donzi I had.