Re: lower end compatibility
Any three or four cylinder case from 79 to 89 will fit and the internals can be swapped. Just be sure to shim the pinion for proper backlash.
If you end up buying a complete unit, then just bolt it on. You can even use later units up to about 1992 but they had tweo piece drive shafts and a different water pump which interferes with the case so a little grinding is necessary. If you do get one of these, be certain that the shaft is included since they are difficult to find AND be certain that the shaft splines are the same as yiour crankshaft; mercury changed the crank and shaft splines somewhere around this time.
The three cylinder lower had a lower gear ratio, so if you do use a complete one, step up two pitches in prop. That is, for example, 13 X 17 to 13 X 19.