Do not spend any beer tokens until compression is resolved.----The 60 PSI is either a bad gauge or blown head gasket or a worn out / damaged powerhead.
Post the compression values.-----You push the key in and hold it in while cranking it over.----Replace flywheel key and torque flywheel nut.----Sounds like it will fire right up after all the work that was done !
The wee little bit of extra oil makes no difference.-----Did you install a new impeller ?----Revisit low speed mixture adjustment.-----I do not believe there is a thermostat on these.---So local water temperature changes idle.
On the 1960 to 1970 models of 40 HP you could even take the reverse gear and use it for forward.------Had to change the bushing.-----Not so simple on newer motors.
Model # of the motor is needed.----Are you sure that you can turn these clutch dogs around ??----I thought they were clearly marked with ----" prop end " ----stamped on them.
