mercury 100hp help!!

[jerry place]

hey guys, i'm new to boating after recently buying my buddies 1988 vip fish and ski. the boat and engine are in excellent condition but has been sitting for 10 years. good news is it was in his garage the whole time. so far i have cleaned the carbs ( found quite a bit of gunk in the upper and lower float bowls), changed the impeller along with the l/u gear oil, replaced various oil and fule lines, pumped out the gas tank, and put new batteries. now for a couple of questions. since i changed the impeller i am finding water in my oil in the lower unit. oil looks milky. the only thing i can think of is the seals under the water pump base plate? also i can't get water to pee out of the exit line when running of not when i have the hose hooked up to it. i have run air through it no problem. thirdly is the oil injection. i've got oil going from the remote tank to the oil pump as i can see it throught the clear lines but on the output side nothing seems to be coming out engine running or not. i've taken the pump off and it doesn't seem to be blocked. i think that's it so far. engine is a 1987 or 88 mercury 100hp 2 stroke by the way. i've always worked on my own cars and bikes but this is my first boat or two stroke for that matter and i'm unsure what to do next.

any help is appreciated, jerry