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After reading all the comments, what I saw was probably mostly exhaust but after draining the gear oil there some water at the bottom so I'll probably have to go through and replace the seals.
Thanks for the input, thinking back on it I was idling it for a long time messing around with the adjustments and letting it get up to temp, ill double check for water in the gear case and go from there.
As a side note is type C gear oil available anymore? or is there a modern equivalent that...
Hey all,
I fixed up a 1962 Evinrude lark 40hp 35933L electric shift, brought it down to the slip and got it idling and running nice. However, it slicked the water pretty good and was leaking when I pulled it out. I know these old two strokes are dirty, but this seems like more than spent gas...