How will I know if the wires are arching to ground?
Can any type of wires be used from automotive? I know that many wiring kits kits now come to where you have to cut wires to desired length and then place end fittings.
I have already cleaned the cap & rotor with emory cloth.
I also noticed that the plugs that are in it do not have the end tab for setting the gap - they are flat on the end - is this the normal type plugs for this motor and are they better? If memory serves me, they are NGK.[/QUOTE]
Yes, those are the right type of plug. And I, personally, prefer NGK. Also, I personally, would change the plugs first. Unlike Chris, my experience with these age motors has been that new plugs make a huge difference, all other thiongs being equal. Most of the ppl on this forum reccommend changing them annually. Of course, all other things may not be equal in this case. But my first trip to this board was about a Mercury with similar issues you are describing, and plugs were an instant fix. Plus, they are cheap, esp, compared to almost everything else having to do with a boat!
If I remember correctly, there are two different plugs reccommended for this age motor, do some thread searches on here, I've read several threads in the past where this was discussed. Mine runs well on the ones I have, I always just take one to the store in the spring and get 4 new ones.