Re: pee hole
My '73 Merc 500 will just barely put any water out of the telltale while idling on muffs. It does fine in open water. IDK why.
When I run mine on muffs, I ALWAYS run it with the cowl off. You can put your hand on the water jacket periodically to ensure it is pumping water.
If it still won't pump out of the telltale in open water, it is probably clogged, and if you are in the south, it is probably dirt dobbers that did it. I ran a peice of 14 g trailer wire down mine when I had the lower unit off for a new impeller, and I was shocked how much crap was stuck in there!