Re: 1996 mercury 60hp outboard HELP!
Bogging when the throttle is turned up is often a sign of a lack of fuel from the carbs.
Squeeze the primer bulb to see if it improves, is so, the fuel pump and/or hoses are not pumping enough fuel to keep the carbs fuel.
Continued operation with the carbs running lean causes the cyl temps to get hot enough to melt pistons and 'may' be part of the reason for the overheat alarm.
Anytime you get an overheat alarm your should inspect the water pump, if the impeller has taken a 'set', that is, if the blades are curved so much that it is easy to reinstall inside the pump, then it is past time to replace the impeller.
Check these few items and repost your findings.