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That exhaust grommet is actually easy to replace !-----But if you say it is HARD then I can not help you.----Takes just minutes.----There is something wrong with this motor and in my opinion there is nothing on these fine motors that is hard to repair.-----It was built in a different era and...

What oil are you using ?----Oil injection working ?-----Post the compression numbers.---Then again the low speed mixture screws might need to be adjusted to richen the mixture a bit.

Sounds like there is an issue with crankcase compression or fuel pump diaphragm.-----Motor needs 4 things to run---Crankcase compression.---Correct amount of fuel.----Spark at the right time.---Compression in cylinder.----Is the replacement fuel pump ( 2 nipples ) mounted correctly on the intake...

The tube MUST be installed into the exhaust housing first !!----The grommet in the exhaust housing is easy to replace.----Stop running this motor until you sort this out.----And how can you be sure that it is going into the grommet in the exhaust housing ??

Was the water tube installed into the grommet in exhaust housing first.----Or did tube stay in the pump ?-----I was not looking over your shoulder during this work, sorry.

Just 4 bolts 1/2" hold it.------4 bolts will hold a 150 HP so should be adequate for a little 40 HP motor.

Is the water in your test bucket 6" or 8" above the impeller ?

If it is the standard control box from factory the switch is in the control box.----They are proud of those switches.----Check all the wiring.----May also be a loose wire on ignition switch.

You will not find that o-ring at the hardware store as stated earlier.

Sounds like the splines on the water pump shaft are rusted out ( stripped ) fairly common event..-----Or you have lost power to the shift switch.----Find the wires that go down into the lower unit and see if you have 12 volts on green with control in forward ( key turned on )----12 volts on blue...

Oh well.----It should be easy to diagnose overheating on a simple 18 HP motor.

There is not enough water in your test bucket !!----Add 6" (15 cm )of water and test run.----Motor does not sound right to me.

Likely the timing is off , wires wrong or sheared flywheel key

The above parts breakdown does not list the nozzle or a replacement carburetor.------Easy fix for this problem here.-----But the poster is overseas.

First check flywheel key.----Check to make sure wires are going to correct coil and cylinder.

The lever that goes across under the carburetors is it vertical in neutral ?----Post a picture ?

I would say it is normal.----But remove lower unit and replace that rubber seal for exhaust.---I doubt that it is the base gasket ?

Replacement carburetor ?----Check E-bay.----Make a new nozzle.

Did you buy from a shop ?-----Warranty ?----Any advice from seller ?

It is called a NOZZLE.-----It is not the high speed jet---Normally that part does not require replacement.----What happened ?----Your location ?