Re: 1988 mercury xr4 150
Inspect that flywheel, shaft and stator.
Some models did use a spline, other a key similiar to a lawn mower.
As another poster mentioned, look inside the flywheel at the magnets, are any loose, broken, or show any 'rub' marks where they have touched the stator?
Inspect the outside of the stator, are there any contact marks anywhere?
No spark cranking? Disconnect the Black wire with the thin Yellow trace that connects both ignition switchboxes to the motor wiring harness and retest for spark.
Repost all your findings, we'll get this figured out.
Check the links in Sparkie's signature, follow the directions, guaranteed you will find the answer.