I acquired this old motor without knowing its history but it had excellent compression and passed the leak down test with flying colors. I have jumped through all (and I mean ALL) of the hoops and troubleshooting on this old outboard and have it running fine while hooked up to water using 'earmuffs': idles great at 900 rpm and has excellent throttle response. Runs like a scalded dog...while hooked up to 'earmuffs'. Back the boat into the lake submerging the lower unit in the water (still on the trailer) and it won't idle or run. Determined to test the motor in the lake, I eventually, with a lot of starting, shifting and dying, got it into open water. At WOT it would only run a sluggish 2200 rpm. Take it out of the water, hook up earmuffs, and it would run a snappy 5800 rpm (more if I pushed it). I think of myself as a pretty fair mechanic but I am new to 2 stroke outboards and am pretty baffled by this. All I can come up with is it has a (partially) plugged exhaust and when submerged in the lake the exhaust back pressure becomes too great. Does anyone have any thoughts on this?