Re: Motor Swap
Both engines can not be 1976! Force only started branding the name in 1984. Original Force engines were white and later ones were dark: blue or black. Late Chrysler engines after 1978 and force engines used a Prestolite ignition while your 135 has the distributor Motorola.
The Force 120 will bolt right up to your leg. If it does not have carbs, the 135 carbs will fit. If the Force manifold has small carb holes, simply replace with the 135 manifolds. Everything is the same.
However, the ignition system will not swap unless you do some modifications. If you have access to a lathe, they will be easy. If your 135 block is salvagable at all, it might just be a better option to repair it. The valve at the bottom that you describe is a water bypass. when there is high pressure in the water jacket, it is forced open and diverts water directly back into the leg. Late Chrysler and early Force engines did away with them, so you can plug it with no harm.
Back to the Force block: Your Chrysler is the older two piece lower unit. It will not bolt up to the Force leg and is not a particularly well designed unit. The Force lower unit has a larger water pump AND, the Force lower unit is actually about 3 MPH faster. Because the Chrysler is rated at the crankshaft and the Force at the prop, the Force 120 probably delivers the same horsepower to the prop as the 135. So, if you could find another lower unit for the Force, it would be better to repair that engine.
Back to the ignition: To use the ignition from the 135 on the Force block, you must first tap the distributor mounting holes on the block to 3/8 X 16. Then you must take the alternator stator mount and turn down (on the lathe) the plug portion that fits into the block because the top of the Force block is lower. If you can find a retrofit top from an old Magna-power II converted engine it will bolt right on, but they are rare and expensive (80 bucks US). You must then either redrill the mount for the five 1/4 inch mounting screws drill and tal the block for the four 3/8 X 16 original mounting screws. After that everything bolts-up and the 135 flywheel, which you must use, will mount on the Force crank.
EDIT: How did I get that the second engine was a FORCE? Jeeze! I really must be getting senile!
If both engines are Chrysler, and if both are the same year, then everything will swap. period. You may need to swap manifolds because some 120 engines used a smaller WB carb, but that's it.