Re: 1971 40 HP Water Problems
1971 was the year they quit putting thermostats in the 40hp, so you don't have one.
You need to take the lower unit back off and see what you did wrong in there. Are you sure you got the water tube back in the pump grommet? How badly is the pump housing worn? Do you have it deep enough in the water to submerge the pump before starting the motor? Was the motor run hot enough to burn gaskets?
That 40 is as simple and reliable as they come. Something obvious is amiss. It isn't rocket science, you just have to look.