MXA,

My 1989 did the same thing a year ago, motor would stall when engaging gears, especially when water skiing.

I purchased the Yamaha service manual (highly recommended) and performed a decarb, new plugs, carburetion and timing adjustment, oil pump check. I also changed the fuel hose as the rubber was starting to get hard and the water pump. The manual is a must and everything is straight forward with basic tools and timing light!!!

The motor now runs great all the way from low idle to WOT.