Re: cylinder leakage test
Well I have never done this on an outboard, but I am guessing the procedure is the same as on a racing engine.
Put the piston at TDC. You will want to put 100psi into the cylinder. If your setup uses 2 gauges, the first gauge should go to 100psi and the 2nd gauge will be lower. Subtract the 2 and you will have your % of leakage.
If you only have 1 gauge, set it at 100psi and then plug it into the cylinder. Subtract the reading and you will have your leakage.
As far as how much is too much, I can not say for sure. On a race engine 20% is way too much but the engine will still run decent. On an outboard I would say if its over 40% then you have a problem for sure.
Hope that helps, if anyone else has something to add or correct, feel free.