Re: Low Compression in top cylinder
1. A 4-cyl Merc doesn't have a cylinder head. The cover at the back is only a cover for the block's water passages.
2. Decarb ain't gonna bring back a cyl with only 40 psi. The powerhead needs a rebuild.
If you you wanna try and see how much damage there is before you tear it all apart, remove the transfer port cover on the intake side of the motor (Stbd side), and look in thru the intake ports. You'll be able to see the exhaust side of the cylinder and most times that's where the worst of the damage will be. Look for signs of cylinder scoring.
You can also pull the exhaust manifold covers and look in thru the exhaust ports. Watch out, though, if the bolts don't turn easily, they're probably stuck and you'll need some heat applied to get them loose without breaking.
You can try the decarbonization routine if you like, it's not gonna hurt anything. Just don't get your hopes up too high!
Here's info on doing the decarb:
http://forums.iboats.com/showthread.php?t=158076&highlight=seafoam
HTH & G'luck..........ed