Re: How much oil?
I don't remember exactly - but it seems like it takes five quarts with a new filter.
Regarding the type - get ready for comments like "Oh no! Another oil thread!"

Things like that.
You will find quite a few opinions on oil - both in viscosity and brand.
The problem is your original owner's manual probably recommended a straight 30w oil. Mercruiser now has a multi grade they also recommend. DonS has a chart he posts from time to time showing current recommendations.
To paraphrase Bondo's signature "Any oil is better than no oil." Just make sure you change it regularly.