Ok - frustrating day. She's not fixed but I have additional symptoms. As mentioned, I took her out, tried to open it up, not very responsive, went up fairly quickly to 2200k, and then crawled to 3k. Once I throttled down and tried again, she would not go past 2200. We anchoring for about an hour and a half to take a break and then started back in. Same thing, she went up to 2200k and then not any further. After about 20min of putting back in at 2200 rpms, she all of sudden started to surge and pick up rpms. She made it to 4100k. She would be steady for a bit and then fall back down to 35-3600, then climb back up. All the while I was NOT touching the throttle. When I stopped it, and then gave it full throttle, she climbed quickly to 2200k, though in my opinion labored - and not hauling butt like she should, and then after about 4-5 seconds she would pick up quickly and start climbing back up to about 4100k.
I am thinking the problem is either fuel or timing related. When we got back to shore, I emptied some oil out of her (about 1 1/2 qts because that's all I had containers for). She is still about a quart or so too full, but nothing major. We headed back out and ran some more tests. Same as above. The only difference here is that it did backfire a few times as she was running up to higher rpms (3600-4100). Also - my guess/hope is completely unreleated, but now my speedo doesn't work. It was working when we were out most of the time, and then stopped on the last run. Again - probably not related, but it isn't working. I checked and the fitting at the stern drive is still on tight as it should be. I am definitely feeling a bit frustrated.