Re: 1988 Mercury 35hp 2 Stroke
What i would do is take off lower unit again, connect hose direct to copper pipe that comes from pump housing, it should be just sticking out from mid section. turn hose on. water should now come out of peehole if not something must be plugging the system. Try backwashing it from the peehole end to free it. Also check the condition of the woodruff key to make sure it will turn the impeller.
Cheers