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Proper marine gear oil is cheap compared to gears / bearings and shafts.----If no water gets in it is good for 3 seasons for most folks.

Sounds like motor is mounted too high.

If you did the job before then removing water intake screens would jog your memory I think.

Need to determine the cause .----Otherwise it will go ---BOOM ----again.

Step #1 is to remove intake water screen.

Mark flywheel with TDC for each cylinder.----Then check where each is firing using a timing light.

Really.-----You need to install those boost venturi.

post the results of a compression test.

They started building that type of 3 and 4 HP in about 1955 and those have never used a thermostat.

The 29 FT-LBS sounds high.

Replaced the wood transom on a Winner boat one time.-----Had fiberglass stringers in it.

The 2 HP lower unit has no plate , yes they used the 2 HP lower unit in 73.-----But there is a kit to convert that simple pump to a more expensive set-up.

Use L77J4C

Make sure drain holes in gearcase are clear.----They often plug with mud / sand / weeds.

Little bit of dish soap in the barrel and issue is gone.----Oil out the exhaust is part of the nature of a 2 stroke engine.-----Some fuel / oil goes right through the motor and is wasted !!!----A much mis-understood concept !

Winner boats at one time used a fiberglass structure instead of wood stringers.

Any wood used in transom and stringers ?

Pick up timing is where throttle plates start to open !

Maybe some foam bits went into the carburetor.----Reed valves do not like stuff stuck in them that holds them open.

Just need 1 gasket.-----The kit covers more than one model carburetor.-----Factory kit comes with complete / easy to follow words of wisdom.