Re: water in distributer!!! 77' merc 1150
Well, hopefully it wasn't because the motor was dunked in the drink!!! ;(
There's a vent hole in the side of the cap, if I recall, and there should be a 'breather' in this hole. If the breather was missing, maybe water spray got in there. That's an awful lot of water, though, not very likely that the motor would run at all. Even a small amount of condensation could cause misfire.
Looks like you've narrowed the problem to the dist and I think we know why! So, you'll need to be replacing the trigger assy. Basically a complete distributor rebuild since it all has to come apart.
Recommend you get a factory shop manual, otherwise you can use the forum's Search feature to find all the info on dist rebuild.
One major caveat, the rotor is permanently cast to the rotor shaft so don't try to pry it off. The rotor/shaft assy is Extremely expensive so you really really don't want to break it!!!
You'll also want to replace both the upper and lower rotor shaft bearings (readily avail at most auto parts stores or bearing specialty houses). There's a snap ring holding in the larger, lower ball bearing.
This snap ring gets brittle over time and breaks, then you have shrapnel flying around the distributor and you can imagine the damage that would cause!
I picked up a suitable snap ring at the local auto parts store for my 1350 dist when it self-destructed. Or order the factory part, it's not much $$.
You'll need to pick up a proper tool for pulling the flywheel (if necessary, and be careful not to damage the distributor drive belt - no prying etc). Might be one avail here, if not check with your Merc dlr or try ebay motors.
You can search the iboats store for a replacement trigger housing. If you can't find a suitable one, I'd recommend getting a CDI-Brand replacement from this site:
http://www.boatfix.com/searchcdi.asp
Here's a good place to find parts diagrams for your motor:
http://www.mercruiserparts.com/SelectModelType3.asp?class_id=2
HTH & Happy Wrenching............ed