Since this is your first boat, 2 stroke motor too. Let me give you an overview of the electrical function of the motor. Refer to the wiring diagram previously provided.
1. Stop Switch - this is really not your ordinary everyday stop button. Instead, this is the Safety Lanyard switch for emergency. To prevent a boat from running like a ghost boat when the driver is thrown overboard, this switch will stop the motor. This is as long as the lanyard on this switch is worn by the driver. Note the White and Blue wires connected to the two M terminals.
2. Ignition Switch - Has 6 terminals and each function as follows:
-(2) M terminals - connects two wires, ground wire and shut down wire (White) from the CD modules. In parallel is the Safety Lanyard switch. When in "Off" position these two contacts are in close position, i.e. shunting the CD's shut down wire to ground stopping sparks in the spark plugs. When in "On" position, these contacts are in open position. Allowing the CD modules to deliver spark to the plugs through the ignition coils.
-(1) B Contact - connects to Battery
-(1) C Contact - connects to Choke solenoid. When the ignition sw is pushed in, this contact connects to the B terminal to energized the choke solenoid.
- (1) S Contact - connects to starter solenoid thus energizing the starter
- (1) "I" Contact - connects to accessories like the Overheat Buzzer and even radio is built in. This contact connects to the "B" terminal when ignition sw is in the ON position.
As for the timing not staying where it is set. Check the plastic block attaching the timing tower to the timing screw. It could be cracked or stripped of threads, thus free playing.