Go to the top of the forum page and click on top secret files. Then go to the second Fiberglassics link shown — should find it informational. The plug for your motor, for example, is a Champion J4J (replaced by J4C). Torque values are also shown.
Your motor sounds to me like it should. For safety, I would replace at least the impeller in the lower unit (the water pump). You are getting some water out the exhaust port on the back of the leg, which is proper, and you are obviously not finding the surface of the head too hot.
You may, however, be running cold — thermostat stuck open. On page 53 of the Fiberglassics reference, there is a parts blow up showing the location of the thermostat on top of the head, as described by Racerone. I would take it out as he suggested and try it. It may be stuck open, giving you cold running. If you have an infrared temp gun, you should find running temps around 130-140F. (160F would be too hot). If in doubt, replace the thermostat.
When you know you have a working t.stat (and a new water pump), I would try cold starting with the automatic choke just for grins. It’s an interesting system.
