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???-----Just look at the cylinder head !!----I see the ports that allow water in that space.

Look carefully at this set up.----Look for the 2 passageways as they are visible in your picture !

At the top of the cylinder head in your picture are there not 2 ports that go to the water jacket ?-----There are on a cylinder head off a 78 model that I just looked at !

Overheat horn would sound.---Motor would keep running till it seized.------Up to boat operator to shut the engine off !!

There is no ECU on a 1976 model.-----There is no " limp mode " on a 1976 model 70 HP !!

Post some more pictures.

Yes they carry water !!-----It should be easy to see how the water gets in there !!----Water does not go through that cover gasket !

Well ----I cannot see , feel or touch your boat.-----I can only try to educate / teach those who are willing to listen.----The factory control had a waning buzzer !!----And compression should be around 140 PSI.----I will step aside.----Good luck with your project.-----Note ---I started repairing...

I say it all the time.----This simple magneto was installed from 1950 to 1990 om motors from 1.5 HP tp 40 HP.---Easy to maintain in any garage or backyard !

Is there a channel / port in the bottom and top of the head??-------And remember they made this cylinder head from about 1973 to 1998.----I think these folks knew how to build elegantly simple motors !!

Just learn to test the overheat horn !!----If you have no clue ask.----There was a horn installed in the control box when that fine motor left the factory.----That is why I suggested to test this horn !

Take a really good look at the cylinder head / head gasket and see how water flows.-----Hint----The water flows towards the hose outlet and then to the thermostat.

I have the factory tool kit for these.----But I think a !/4" ( fine thread ? ) threaded rod and slide hammer can be used.---Work carefully

Terminal 2 and 3 are the same connection.----Clearly seen in your picture !!-----But post your actual compression values here.----And is a new water pump impeller installed every 5 years ?-----Tested the overheat horn ?

Explain why you mention----" oil intake adjustment " on this motor ?-----You would have to replace the carburetor jets.----Fairly easy to do.----Your location ?

RK is for electric shift.----This motor is NOT electric shift.

If you do not like affordable older motors then visit a showroom.----Tell them what you want and present the credit card.----I would go with an older 6 / 8 HP Mercury.----Avalable with electric start and kits for remote operation.

Love seeing pictures of those old ignition coils.----Have a bunch on hand here.-----Sometimes it is difficult to explain the difference between spark on a plug and maximum output of one these simple magnetos !!

Remove bottom coil , it is possible that insulation failed.----Look for " burn through " between coil and magneto plate.----Voltage would rather take the easy path to ground rather than jump gap at the plug.-----Do not have enough fingers and toes to count how many times I have seen that !

The 1/4" or more gap jump puts the magneto and components to a full test.-----Most are unaware that it takes more voltage to fire a plug when air is compressed to 100 PSI----So a plug that sparks touching the block will not fire in the cylinder.----That makes you think you have spark and keep...