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Leave the timing alone. Unless someone adjusted the link your timing is fine. And either your gauge is broke or you did a faulty compression test. No way that motor runs with 65 psi.
The shift linkage disconnect is behind the electric starter. Take the starter off and you will see it. When you reassemble it make sure the washer goes back on the shift shaft.
They are not wonderful if the repairs cost to much to actually fix them.
Kinda funny though one of the best engine manufacturers in the world still running 2 strks. Putting the engine under the water line is nothing new.
What is the serial and model #? That will determine what emblems or decals it would need. Also if it is a Wizard, Sears,Elgin or Scott, Mcculloch. These are 64 an seem later Emblems...
I am not ripping on you. With the price of your EMM and the parts you just bought you exceeded the value of the motor. That is just a fact. Don't be mad because your motor went obsolete in less than 5 yrs of being manufactured. Your mechanic should be able to tell you which pump. Why don't you...