The 3.7 was an OK concept, however Mercruiser fell down with the execution. We can all agree on that
Half a ford 460 with a gm flywheel and custom crank and cam, great midrange motor a step above the 2.5/3.0, and a step below the 5.0
The floating bores of the open deck block should have been addressed durring the design phase and the iron Ford head should have been aluminum from day 1. These two issues are the major downside of the motor
The heat exchanger should have been 4" from day 1.
The other shortfalls of the non-hardened cam snout and the outboard charging system can be dealt with.
Hoewever if the head gasket went and the motor sat for more than a week, (and it sat for years based on thr first post) there will be rust on the cylinder walls.
The OP has a 470, our job is to give him answers to his questions, not argue among ourselves.
Since the drive is off, the motor still wont turn, time to pull it and tear into it
Merry Christmas y'all