Ayuh,...... Sounds like the outer cable sheath has a grove worn in it, allowing the inner(working cable) to move, before it can push/ pull the tiller arm,...
Nope, there should be 2, 7/16th nuts at the bottom of the transom that hold the manifold in-place, removing 'em allows pulling the manifold down, to unscrew the inside lines,....
Ayuh,...... Did yer motor have exhaust shutters,..??
If so, I've found that burnt up shutters in ole Mercs can fall down into the y-pipe, 'n rattle,.....