Re: An outboard from the Garbage - but will it run again?
I recommend that you buy the carb rebuild kit. It will have all of the items that you need and it is more cost effective to just get it all at once.
While low speed needle valves are generally "pointy" at the end, I would be more concered with the condition of the taper that leads to the "pointy part." If you overtightened the valve when screwing it in to get a benchmark position for later backing it out, the taper will have an indented ring around its circumference. If so, it will be hard to adjust the low speed fuel flow properly. If there is no indentation, you should be ok.
I agree whole heartedly with Jay on this. You will need to look very closely, when inspecting the needle, to see this indentation. Do yourself a favor, while you have this carb apart, and follow the instructions in this thread to the letter........
http://forums.iboats.com/showthread.php?t=244013
If you don't have access to an air compressor, there are cans of compressed air in the electronics department of your local K-Mart. While this is not necessarily the ideal method, you have to make due with what you have available to you. If you have an auto parts store available, purchase the gallon size can of carb cleaner, with a dipping basket inside, to soak the carb and smaller pieces within. You'll be glad you did. And it will likely save you from having to pull this thing apart again later. It's hard telling how long your outboard has sat, as mentioned earlier, so be thinking of that SeaFoam while your at the parts store getting carb parts, and purchase some.
What's the difference between a rebuild kit and a repair kit? (Is it the same thing?) What parts normally come in such a kit?
They're the same thing. Just be sure to get the complete carb kit with the float. This will normally consist of most everything you need to completely rebuild the carb with all new seals, needle, seat, and of course the float. Take your time in cleaning the carb too. You know the old saying, "Do it once, do it right, do it wrong, do it twice!" So.....take your time. There's no rush. And assuming the low speed needle isn't damaged, always remember to
lightly seat that needle when the manual call for this.........

...... I would imagine that the needle has a somewhat rounded (or at least not a needle-sharp) point to it. If it were needle sharp before, you'd likely see a bend in the tip of the needle. I would imagine your going to be fine if you can't see this crook, or bend, in the very tip end of the needle.
Would this all be to do with too much fuel getting in through the carbs or do you think I may end up finding out I've got a problem with the piston rings????
If you had a problem with the piston rings, your initial compression test would have indicated this. Your at 70psi on both cylinders. Your fine!!!! The decarb will likely free those rings a bit and tip these numbers up a bit. Once you get her running correctly, do the decarb, and re-check your compression. You might be surprised at what you will find!!! I'd say your hunch about the float and needle was on the right track.
Here's another thread that you should read. Very informative!!!!!..............
http://forums.iboats.com/showthread.php?t=167352
Your
ALMOST home Jamie!!! Hang in there!!!! Good luck to ya!!!.............. ALAN