Re: 1971 Mercury 800 80hp Switchbox...
Ok, just a little more analysis, if you look at the diagram I posted, you'll see that the "Mercury" switch can short out the ign to kill it. Normally this would only happen if the motor hit an underwater obstruction and tilted up. But it is something that could easily be disconnected to rule it out.
On page 276 of the manual linked in a previous posting, the section applicable to your ign is titled, "WIRING AND CONNECTION TEST
(Model 800 Ser. No. 3051041 through 3052380 and Model 800 Ser. No. 3144219 through 3192962 ONLY)".
Before you start testing, line up the flywheel timing marks so #1 piston is at Top Dead Center. Then stick a spark plug in the #1 plug wire, and ground the shell of the spark plug to the engine block.
This ign requires constant power on the red wire connected to the switchbox, and switched power to the white distributor wire, which is connected via a terminal block to the main wiring harness. The white wire is powered up with the ign switch in "On" or "Start".
Switch the ign to "On" and check that you have 12V on the white wire to ground. Also be sure there is power on the switchbox red-wire's terminal. Fix any problems found here, before proceeding with testing/troubleshooting.
Next, disconnect the blue wire(s) off the switchbox and turn the key to "On". With a wire connected on one end to a solid engine ground, use that wire to momentarily ground the blue terminal on the switchbox. Every time you ground/unground the terminal, there should be a sparkl.
If you have spark for this part of the test, but no spark when the dist is hooked up and the motor is cranked over, it indicates a bad trigger assy in the distributor.
If you don't have spark, it doesn't specifically rule out a problem with the distributor, but it does point to a problem with switchbox or coil. Since the Merc ign coils are the least likely component to fail, in that case I'd say the switchbox would be bad.
One thought, you said the wiring was in bad shape, has this been repaired? Bad wiring in itself can cause ignition failure. All the wiring & connections need to be up-to-snuff before even bothering to test components.
HTH & let us know what you find..............ed