I'm learning a lot, thanks. Since my last post I pulled off the lower unit again on a hunch. I had my wife help me put it back on and she caught that the guide tube missed the target, which I think, would explain the water coming out of the propeller and not the exhaust. So with her help I realigned everything. After a successful muff run I took it to the lake. Unfortunately, at 3k rpm it went up to almost 200 degrees (100 degree weather) but cooled back down to 160 when idling with the engine cover up. Tomorrow morning I'm going to back it into the lake with the hose from the impeller disconnected just to verify I'm getting good pressure. If that's good I'm thinking maybe I need to inspect the heat transfer unit (4") to ensure its not plugged.