Re: Mercury over heating
You should number your questions so the answers can be numbered.
Anyway, if you suspect fuel delivery problems, there is a procecedure where you put a vacuum gauge in just before the fuel pump and see what happens. Another part of that procedure involves installing a short piece of clear vinyl line in the fuel line. The object is to find suction restrictions, like a plugged pickup screen, or air intrusion through small leaks anywhere they may be.
your water pressure seems to be a bit high. It indicates that water is getting to the power head, but having trouble getting out.
Does the pressure "step back" a bit at about 2 - 3000 rpm. It should drop slightly when the poppit opens. If the poppit is plugged, you would have high pressure and overheat.
I ran over a rotten log, cutting it in half with my XR4 once. Took me a month to pick out all the toothpicks from the cooling passages and get it to run cool again.
It's possible there's no fuel filter. If the carbs are the "final filter", that's probably where your trouble is.
The only adjustments on the carb are jet changes, and the tang on the floats adjusting float height. They have a muriad of small passages sensitive to dirt, though. If you opt to open them up, put in new gaskets. They won't seal internally with the old gaskets, and give you grief you can't imagine. In other words, don't compound the problem with half-hearted service.
The hard starting could be from fuel delivery problems, or it could be from serious engine damage from the overheating. Don't mess around. Check compression, and find the problem before you run it.
hope it helps
John