Re: GM 292 in place of MCM 250
i've no personal info on this subject, only speculation.
my first question would be, if it's such a good idea, why did mercruiser only go with the idea for 1 or 2 years? they sure changed their attitude awful fast. maybe it was because it was only mated to a mercruiser II drive and the II drive was a bad idea, i don't know. but before ya attempt the switch, it might be a good idea to find out why merc. changed there minds so fast. might be some insight as to weather ya wanna proceed or not.
since it was only mated to a II drive. i would think there would be compatibility issues between mc-1 and mercruiser II. what they are, i don't know.
i've been on iboats a long time, you too fd. i've never seen anyone say they did that conversion. lots that say they want to do the conversion. but i've never seen one thread that says they did it and got away with it.
myself. i'm a poor boater. reliability is very much on my mind. my 250 cid works well, it's known to work well, even beyond well. you've seen it said before, the 165hp L6 250cid mated to a mc-1 drive may be one of mercuruisers best success stories. it's a very desirable package. i see no reason personally to open a can of worms and change it's desirability and reliability.
fwiw, i've read more than once that the 292 w/4bbl is thirsty. imho, that'd be a down side. the 165 can be thirsty too if yer on it all the time, but if ya use judgment with your throttle hand, ya can keep the fuel consumption down to satisfactory imho.
i do wish you good luck in your adventure.