Try spinning the flywheel clockwise by hand with the plugs out, then with the plugs in. Difference is compression when plugs are in place. (That is, unless you feel a metal to metal obstruction.)
Thermostat issue possibly. Clean or replace. Make sure the bypasses in the t.stat cavities are clear. Tell take may be clogged -- run a piece of weed whacker line in as far as you can.
Likely not the gas. People choose higher octane to avoid ethanol mix -- attracts water, etc., etc. Make sure to use 50:1 oil mix with good marine two-cycle. You may need some carb adjustment, but should replace the impeller as a first priority.
I think it is probably the other way around. The starter disengages after the engine fires (but does not run). It sounds like the air/fuel mix is a bit too lean -- engine with not catch and run. Determine ignition strength by measuring spark with an open air tester -- should see somewhere...
Pull off the drained lower unit, and pressure it with a few lbs from a tire or foot pump (I use a basketball needle and a piece of rubber.) Use a spray bottle with some dishwater soap and water to locate leaks.
not sure what a dimensional setting would be, but try setting the needles progressively leaner, 1/8 turn at a time and let the motor adjust. Repeat until a backfire or stall, then set 1/4 turn out. See if it's happier with that setting.
Unless I need more coffee, the bent skeg should help counteract the starboard lean -- depends how it's bent, I suppose.
You may need a set of trim tabs -- would find an improvement in economy as well.
Probably not VRO, but not sure. For testing, I think I would use a known good portable tank with 50:1 mix (2.56oz per gallon). No point in mixing up too much -- would do a gallon at a time.
On the main tank, check it for contamination (mainly water at the bottom). You may have to dispose of...
Step one is to remove the cable at the motor. Step two is to set the lever at the motor to the desired position. Step three is to increase or decrease the cable length as needed, using the adjustment wheel. Step four is to attach the cable to match the position of the motor lever. Don't try...
^^my choice. ("top" on the lobe refers to its installation. If you see the word, the points are right-side up -- correctly installed.) Rotate the flywheel by hand until one set of points is fully open. Set at that point to .020 and tighten down. Rotate flywheel again clockwise until the...