Alright, I finally had time today to take the carburetor off the outboard and give it a good cleaning. I soaked all the parts in the carb cleaner bath for several hours and also used a spray can carb cleaner and blew it through all the tiny channels. Put all new gaskets and diaphragm on it and assembled it again. I double-checked the bolts holding the adapter plate and reeds in place, then put the carb back in place with a fresh gasket and made sure I tightened the nuts holding it properly. I did notice when I took it off that those nuts weren't tightened very much, so I may have had an air leak.
Another thing I noticed was that the timing link that goes from the choke/fast-idle adjustment arm to the trigger arm under the flywheel had slipped out of the arm. So when the adjustment was changed the timing didn't follow. So I fixed that while the carb was off.
I pulled the boat out in the driveway and filled a tub of water for it to run in. And then I cranked it up. I am happy to report that it actually runs much better now. It idles pretty well and seems to do ok idling in gear as well.
Here it is idling in neutral and is hovering around 750-800 rpms:
Here it is in forward gear and hovers around 650-750 rpm:
It does still surge at times and then drops back down. At times it drops below 600 rpm and almost stalls. It usually recovers though. I'm not sure why it does that at this point. I'll have to analyze it a bit more. I have noticed that the bulb on the fuel line never gets that full feel to it. When I squeeze it, I can squeeze it about half way before I feel fuel flowing through it. So perhaps I need a new fuel line. I can't see anything wrong with it but I would think that bulb should fill up after a few squeezes.
Now I need to take her out on the lake and see how it does there. And if it still runs rough on the lower rpms.