Re: 9.8 won't pee
1. The motor is designed to let the water come out the eshaust relief port in the event the pee hole is blocked--or at least older 110's are. This is usually referenced in the owners manual where it talks about checking for water at the pee hole. So, it makes sense that blowing in the pee hole would let air out in the exhaust, which means in the leg. So, no, it doesn't necessarily indicate a gasket problem.
2. Check the parts blowup and make sure you don't have a thermostat. Again, older 110's did not, but I'm not positive about your 1983.
3. I have had the copper tube come out of the powerhead end when pulling the LU on a 1970's Merc 200, and was able to look up the leg with a flashlight and just stick it back in, no problem. Again, I can't be certain about your 1983 110. But if your next option is to pull the powerhead, it doesn't seem like you have much to lose by seeing if you can wiggle it out of there. But first I'd run something up it to see if it is blocked, so you know if that is where the problem is. If you do pull it, take a measurement first so you'll know how far you need to push it back in.
I'm sorry I don't have any direct experience with such a "new" motor--I hope some of the others here are keeping an eye on this discussion and will chime in if we're missing something.
Additional diagnostic questions may also help: Were there any missing pieces of the old impeller when you removed it? They are a likely candidate for the source of your trouble. Also, was this motor run in salt water or a lot of silt? When did the problem first appear? Was it pumping water before you replaced the impeller? If not, did it stop suddenly, gradually, or is the motor new to you so no idea?
Keep us posted!