That extra Blade will certainly kill your RPM and Top Speed. What RPM were you getting at WOT with the 3 blade? That engine will run best when propped for around 5400 - 5500 rpm
I will assume your engine is a 78 also, 149 inch block. In 1980, OMC upped the displacement to about 160 inches and they were sitting on the fence as to making it a 260HP. But when the 1980 motors were introduced it was a 235, There is more power to be had from the engine, however hopping it up will have an affect on how it runs at lower speeds, its acceleration, and its Longevity. Scream and Fly would have many threads about Hopping it up. It isn't too hard to make an engine scream at the top, but it may be a real PIA to operate otherwise, especially on a Non-racing hull
Regarding the hydro-foil, I assume you are referring to a piece of Plastic that you attached to the Anti-ventilation Plate? Myself, I would remove it, take it to the deepest spot on the lake/river and toss it overboard. Your engine should have absolutely no problem planing the boat very quickly. If the holeshot is poor, you might have too much pitch, an engine that isn't firing on all cylinders, or a bunch of saturated foam. Once all those are found to be in good order, if looking for more top end, you could raise the engine on the transom(about 1 - 1 1/2 mph for every inch higher at speeds above 50mph, but you will need a higher performance prop that can run partially out of the water. BRPs RAKER, or Mercury Enertia are great props for lots of Recreational use, Not Cheap , but great props.
Paint? some of the 2 part Epoxy Paints go on very thin and are suprisingly durable. If you are in salt water than you need Anti-fouling paint.