Re: Hot water coming from tell-tale hole
David,
Not familiar with your exact engine, but I can tell you from experience that my '00 200EFI has the tell-tale piped off of the discharge side of the engine thermostats. Since the stats don't open until +/- 143 degrees, the water coming out of the tell-tale is over 135 degrees, which is pretty hot to the touch. Some of the other posts have also hinted at this and I believe that many mercs are piped this way.
Before you convince yourself that there is an overheating problem, trace the pipng of the tell-tale and determine where the source is coming from. If it is coming from the discharge of the thermostats, collect some of the water from the tell-tale and use a thermometer to check the temperature. If it's not more than stat rating, the fact that it's hot to the touch isn't necessarily an indication of a problem.
Hope this helps.
Jim C