Re: 85' 35hp merc. water in top cylinder
The lower cowling will not slide completely down if you remove the lower 'horse collar' wraparound cowl. The center section (exhaust tower or 'mid') interferes with the I.D. of the motor 'pan'.
But, removing that lower cowl might let the motor pan slide down enough to get at the manifold bolts. I can't recall if that motor has inner brackets bolted from the top of the motor to the lower cowl, if it does it'll help to pull the bolts out of those since they also will prevent the pan from sliding down much.
Of course, you would have had to remove the 'horse collar' anyway to get at the powerhead nuts!
This is just the way the older Mercs were designed, 60hp Dude oughta be happy he's got a 'clamshell' cover to remove!!! A lot easier to get at everything fer sur!!!
BTW make sure you have removed all the powerhead nuts. There are 2 nuts at the very front of the motor, one per side, which aren't so obvious unless you're looking for them. This is also a convenient prying point for a 'wonder bar' or similar flat prying implement, as you can pry against the transom brackets for leverage.
Once you break the gasket loose the powerhead should come right off.
HTH & G'luck...........ed