Re: Engine runs rough at High RPM's 40 HP Evin
By red line, you mean it races like it is slipping? Does it make any terrible grinding noises when it is doing that? If not, then it is either cavitating or the propeller hub is slipping. Most likely the hub.
To find out, make a mark on the plastic prop cap and another on the propeller itself, aligned with the first one. Run the motor till the suspected slippage occurs. Stop the motor and see if the marks are still aligned. If not, it has slipped. Either replace the prop, or have yours re-hubbed. You can't re-hub it yourself, you have to send it to a prop shop.