Re: what position?
The one is missing! the prop is a 10 3/8 diameter by 12 1/2 pitch. That is a little much for a 55 on a 16 foot boat. If you can find one, a 10 3/8 X 11 1/2 might give a bit better performance. Check on ebay or The Chrysler Crew. I don't believe iboats carries those props. HOWEVER: If they do carry props for early Force 50 HP engines, they are the same prop with splined shaft and thrust pin drive. Again, spending 80-100 bucks for a new prop is not really worth experimenting unless you intend to keep the boat. Unless you can get a really good sale, better to try the auctions.
Be careful with the idle needle. Yeah! Leaning it will give a little better economy and a better idle. BUT the top cylinder normally runs a little leaner than the bottom. Go too lean on the low speed needle and the money you save in gas will be spent on a new piston. I strongly recommend that unless you have a specific problem, you leave the low speed needle alone.
Outboards normally are fuel hogs. If you can't afford the gas, then you can't afford the boat.
As far as the hydro-foil: If it improves performance, then go with it. However, with it setting below the surface of the water at planing speeds, it will increase drag and lower top speed. That engine is not so heavy or powerful that you can not test run it without the bottom two bolts. SO: For test purposes only. I have done it a number of times. A safety chain would be a good idea though. Raise the engine on the transom in increments by putting a spacer under the clamps and tightening the clamping screws. At each increment, vary the tilt setting to see what happens. When you find the point where the engine starts to cavitate while on plane and in a straight line, lower it about 1/4 inch. This will most likely give the best all around performance. Once you find this sweet spot, install the bottom two bolts.