Re: Anybody know this Chrysler outboard?
The loud bang is probably due to a sheared flywheel key causing the engine to go out of timing. Indeed, I can see in the photo that the points cam is displaced about 90 degrees from the slot in the crankshaft. The key is an elongated one that not only locates the flywheel, but locates AND drives the cam.
Before replacing the flywheel, clean the rust off the crankshaft and the inside mating surface of the flywheel. Do this with a small bit of fine lapping compound or a mix of oil and abrasive sink cleaner. Put a small amount on the crankshaft and install the flywheel WITHOUT the key. Rotate it back and forth about 90 degrees for a couple of times then relocate about 90 degrees and rotate again. Do this until you have completed 360 degrees. By this time, both surfaces should be clean and lapped to each other for a locking taper fit when the nut is torqued. Remove the flywheel and clean both surfaces, install the key, and reinstall the flywheel with correct torque on the nut.
While the points look good, since the flywheel is off, clean and gap them to .020 anyway. Lubricate the felt wicks, which are missing, with a very small amount of heavy oil to provide lubrication to the rubbing blocks yet not be flung off to foul the points. I don't know where to buy wicks, none were ever missing on my engines. However, they are rectangular white felt pieces that go into the slots in the point plates and wipe against the cam.