Early 90s Tohatsu running poorly

[alwayssomething123]

First post here. Recently bought an early 90s Tohatsu m40c 361a. Upon initial installation it loved to start but hated to run. Checked spark plugs and neither of them were the correct ones so replaced those which helped a little bit. Never saw water come out of the tell tale so I pulled lower unit and found bad impeller. Replaced that and now it starts, runs, and stays running but not very well. A LOT of white smoke from exhaust and also appears to be leaking gear oil from one of the weep holes when sitting dry. Every time I raise it out of the water too it has some black oil on it. Looking for any and all advice as to what could be wrong. A lot of people are telling me I just need to let it run for awhile and smoke everything out but I don't want to hurt the thing. Also trying to avoid breaking out another thousand by taking it to a shop. Any advice is much appreciated!

 

[pvanv]

The black oil is likely unburned tcw-3 oil. typical. Likely need an LU seal kit. And clean and adjust the carb.