your local radiator shop is usually looking for work, and they weld aluminum cheap. my guy had more boats and boat parts than radiators the last time I was there.
You are confusing ignition timing and cam timing
Yes, retarding the cam timing will move the power band lower (sooner) providing a bit more torque on the low end
you have to do some troubleshooting to see what needs to be repaired.
either the piston seals need replacing, or there is dirt in the hydraulic pump holding a load holding check valve open.
throw the clymer manual out as there is more wrong information than correct in there. they make bad toilet paper and worse manuals.
do you have Volvo Penta motor and drive, or Mercruiser?
if Volvo Penta, go here for factory manuals...
you have lower units from two different vintages. you are going to have to do a lot of work to get it to work. two different style drive shafts, two different style shift shafts. what else has changed over the years.
just because the mounting bolts line up, doesnt mean it will work.