Re: 1969 merc 800
I've got a '71 vintage of the same motor. Still running strong, but I had to do a rebuild this winter due to bad lower crankshaft seals and bad main bearings. Not bad for a 42 year old motor. Parts are still available but the electonics/electrical parts are expensive if they need to be replaced.
One common problem is that the insulation on the internal wiring harness becomes brittle and falls off the wire. Pretty much every old Merc needs to be rewired.
A couple things that should be done. Do a compression check. That will give an overall indication of the condition of the motor. Drain and refill the lower unit oil, and check for water or metal fragments in the oil when you drain it. Replace the waterpump impeller to be sure that the cooling system is working properly.