Quote edited somewhat so I can view portions at a glance.
Boat was given to me after sitting for 5 years.... I haven't had it in the water yet just on muffs.... checking wiring,... A few months ago it ran great after getting spark back and rebuilding carburetor....
While my brother was here we were going to take it to the lake. I wanted to start it on muffs first to assure it ran like before. It wasn't,... Replaced all four coils as two had cracks and the other two above 1 and 3 looked like they had melted a little.... It could of been overheated before I got it.
The cylinders look good, pistons have some carbon on them, two and four cover looks pretty good but 1 and 3 cover has a lot of salt build up between cover gaskets, I'm guessing it salt, looks like a lot of white compacted powder. No scratches on cylinder walls. water passages are pretty clean, not a lot of build up.
Before you get into the following.... Compression relates to the speed in which the engine cranks over..... If you have a slow cranking engine (weak starter, bad battery, poor connections, whatever) that will result in poor compression readings and no ignition.
1976 85hp Johnson
Ignoring the compression readings momentarily..... I'm under the impression that the engine has no spark also? If so:
The engine must crank over at least 300 rpms in order for the stator to energize the powerpack capacitor.
Remove all spark plugs.
Rig a spark tester so that the spark must jump a 7/16" gap... the gap is important!
If no spark... and the key is in the ON position, do the following:
Remove what should be a black/yellow wire... regardless of color, it will be the first wire on the port side of the powerpack on the bottom row.
NOTE: Standing in back of the engine, facing the spark plugs... Port is Left... Starboard is Right (some have a problem with that).
Re-test for spark... Do you now have spark? If so, replace the ignition switch.
Let us know what you find.