Re: Motor rebuild and regear
Get a 350 truck engine and throw all the 305 marine bits on it... Job done. The basic block for a 350 and a 305 are one and the same. Look in the Merc parts catalogue and you'll find that the 305 and 350 even run the same camshaft! If you want to 'hotrod' it, be aware of the pitfalls.
1. More top end power usually means less low end torque. In a boat that's a bad idea. Unlike your cars, a boat has no gearbox with selectable gears on the fly. You need the low end torque to push you up and out of the 'hole'. If it's not there, the boat is a dog to drive.
2. More power can also trade reliability. More stress on parts ect.
Better than producing more horsepower, try and get more torque (and a 350 is fantastic at that), particularly low end... You find the boat even better then.
As long as you don't go over 300hp, then the drive will be fine. It looks like the drive ratio for the 305 and the 350 are the same (1.47:1), so all you'd need to do is change propeller.
Chris........