Re: High altitude oil mixture
There's an old saying, perhaps you've heard it: "Two-cycle engines run best right before they blow up." There is, in part, some truth to this. You experienced it with your snowmobile. Allow me to explain:
Two cycle, carbureted engines are set up, on purpose, to run a little rich. This keeps things running cooler and therefore keeps them from burning up. If it runs at all lean at cruising speeds or above, it won't be long until it's fried, although right before it gives up the ghost, it might be running like a violated ape. The oil in the gas is part of the combustion mixure, as opposed to 4-stroke motors where straight fuel is what is burned. In effect, you leaned out the mixture by removing the oil, and therefore allowed the engine to run more effeciently... for a time... as you said, 200 yards.
Leaning out the oil mixture in your 500 is NOT the solution. You will, at best, shorten it's life. If you are at 5000 feet, and you have the "stock" carb jets in your motor - i.e., those that are supposed to run at sea level - then you will pick up a LOT better performance by switching your carb jets for the altitude you are at. With the sea-level jets, your motor would be running SUPER rich at 5000'. The Mercury shop manual for your motor has the carb jet size recommendations in a section, but I don't have the shop manual for your model motor. But, again, I urge you to NOT lean out your OIL mixture, unless you are trying create a nice, heavy, black boat anchor.
TG