If the carb and linkage is set up right, look on the starboard side of the engine just below the pan. You will see a spring loaded screw. Run it in a bit till you get the idle where you want it. Keep in mind that you don't want the idle set to high...rough on the gears when you shift.
The 1976 35 HP has Point/condenser ignition. If the iddle mixture screw is set right ( do a search on iddle mixture ) a little weaker ignition on the one cylinder will cause it to stall at iddle. Has the ignition been serviced recently. You can check by pulling plugwires one at a time, put a screw or nail in the spark plug boot and hold it 5/16" from ground while a helper pulls starter rope. Both spark should jump to ground with bright blue spark.
howdy i had a look at the iddle screw it is turnd out about a 1/4 of a inch but cant move it might have to get a new one also i found as i pull the lever all the way back it hits the iddle screw but the motor wont start at that pos it just misfires and now i have no spark on the top plug looks like the coil packed it in it lost all power yesterday when we took it out for a run was not a good day i was in the wooden boat festival so il get the coil looked at tomorrow regards karl