???----Your bolts are NOT -----7/16"-----Well the wrench you use might be 7/16".-----The bolts are 5/16" mate !!!!----And the threads in the block are aluminum.
Drill a wee hole from the side near the top of the bolt.-----That gets penetrating oil in there.------Some of those bolt cavities fill with aluminum oxide and jam the bolt solid.-----Then drill through from the side to cut the bolt !!
The solenoids rarely fail on these.----Only use 12 volts when motor is in neutral for the one solenoid.----And 12 volts to both for reverse.----For most applications those solenoids are only used momentarily.-----No power to those solenoids when in forward gear !
What was the shifting issue ?-----Checked the control box and cables ?----Have you checked the gears ?----Have you checked the shift rod height ?-----Checked the cover where shift rod goes into the lower unit ?-----
Are you looking at buying this boat ??-------Remove the screws on that broken cylinder and I believe you will find one oil line going to that cylinder.
??-I say it is hydraulic.----Look inside the boat for a motor / pump / reservoir and black plastic oil lines going through the transom.----Any other pictures of this project boat ?
It appears that many dealers may shy away from anything with the Evinrude label.-----Also just noticed the Volvo may be getting out of the 7 Marine product too.
Likely the lower unit was off for water pump work and it was not re-assembled correctly.------Start by taking the lower unit off again.----Look on this site for a tutorial on how to correct this issue.
There may well be a difference in the wiring from ignition switch.----The 1965 motor might be 12 volts to coils to run.----The newer controls might be OPEN to run and grounded out to stop the motor.
They are a direct , fuel injected 2 stroke.----Efficient and not very loud.-----Make sure you have a local dealer with the expertise and mechanic to work on these.-----And that goes for all big , high tech 4 strokes too.