Re: 1996 48 spl "hot" light stays on
Just because the telltale stream is nice and steady does not mean that your engine is being cooled.....ala your thermostat is functioning properly. I don't know how your engine is plumbed, but some telltales are connected to the head water jacket and some are connected elsewhere. Some telltales squirt as long as the engine is running and some don't squirt unless the stat is open. I know Mercs have both types; don't know about OMC.
I'd pull the stat and put it on the kitchen stove with a candy thermometer in a pot of water over a low fire. The stat should start to open at around 140F and be fully open over another 15 or so degrees.
Also, while the stat is out, on muffs, fire it up and see if you get water coming out of the stat hole in the engine....obviously you have to wait a minute for the pump to pump the water up there. Water should flow nice and smoothly out the hole at 1000 rpm. If you get it, don't keep running the engine.
If those tests are good then it's a good guess that you have a temp sensor or wiring problem.
Mark