Thanks guys for the responses. It explains why I couldn't find my "tell-tale" nozzle. I'd like to clarify my last post. When I recieved the engine, I noticed a slight discoloration of the paint at the top of the exhaust manifold. Since I didn't want to take any chances, before cranking the engine, I pulled and replaced the thermostat and pressure relief valve assembly. I also replaced the impeller, flushed the engine with the lower unit removed and replaced the water tube grommet. When I connected the water and cranked the engine, water only discharged from the area directed above the gearcase and a small hole at the top of the gearcase. After the engine reached operating temperature and the thermostat opened, water discharged from the six small ports on either side of the gearcase. A fine mist of water and exhuast was discharged from to dime-sized openings at the top of the lower unit. No water flowed out the prop. Thought the engine did not overheat, I was not completely sure this was the proper cooling cycle. If I'm just being anal retentive or I have a problem with my cooling sytem, let me know.