water will not go to the manifolds unless the Tstat is open. If it was removed and this is the flow per scott start with a new water pump in the lower unit
Alpha`s use a "dog clutch" when the drive shaft turns the prop clockwise for Fwd the prop is locked to the shaft. When freewheeling in Fwd gear it will ratchet clockwise. perfectly normal. In reverse it will ratchet CCW
On carb models, the tube from the exaust manifold to the intake warms the intake for better fuel management. Vortec head do not have the exaust crossover in the manifold