Scratching my head..Testing the water pump in a big tub and it doesn't seem to work with the lower unit all the way down but when I slightly raise the unit the water flows fine. Could something be plugged??
stop.
trying to run an outdrive in a bucket will do nothing but burn the impeller.
impellers need to be flooded prior to startup. which means the whole outdrive will need to be under water. that means the bucket needs to be big enough to float the boat in it.
either A - run it on muffs, or B run it in the water.
use the videos on the TC electronics page to service your drive. these guys are one of the few servicing folks for ancient stringer drives
http://sterndrive.info/
as mentioned, dont damage the shift cable. its $750 for a new one
when you have your drive apart for the water pump replacement because you toasted your impeller trying to suck from a bucket, make sure to inspect the splines on your 3-piece vertical driveshaft. they fail. if the driveshaft splines are pointy and sharp, you need to fully rebuild the drive and replace the shafts. you may get lucky and the prior owner replaced them already (the splines would be square and fit tight)