@spareparts - Thanks. I will definitely upgrade to Pertronix or similar once I determine if outdrive is good.
It's on a spare plastic tank with fresh-ish fuel. I picked up a couple of carb base gaskets and I was going to swap one out, but disassembly of the linkage, etc looks a little challenging. Maybe some of the parts just slip out, but I don't want to forget how it goes back together. After some more research I'm wondering if the starting fluid was running out through some kind of overflow. I didn't spray that much. Could the extra/overflow just been leaking out of the carb through an overflow of some sort. I did loosen the carb base nuts already a bit so going to have to move forward with replacing the gasket.
The start switch has been moved to the back near the motor. Just a push button. There is a vacuum gauge back there with a line from the carb. Check pics. I don't have a key currently (waiting on mail) so I guess it wasn't getting spark.
1) Should I drop some oil in the cyls before I crank it too much? I was watching an engine restoration vid last night (another Merc 165) and a guy used Marvel Mystery Oil for this purpose.
2) In addition to the hard fuel line there is an another hard line (wrapped in heat shield) that goes straight down to manifold on the stbd side of the carb. I loosened that fitting and the whole pipe came off from the manifold - looked like something might have broken - there is a small stand off left in place - not sure how it mates/mounts up. Looks to be coming off the choke. What is this for and will it affect vacuum?
3) Before I get any further Im going to vacuum/clean off the engine (no washing yet). I don't want anything falling off down in any holes left by things like #2 above.
4) There is also the vacuum line to the gauge sitting above the engine. I suppose this could be dry-rotted. Should I replace that? I don't even know if the gauge is good anymore.
5) Can I short the key "on" switch to get power back to the coil?
The bad (potentially) - I lowered/trimmed down the drive leg and removed the oil plug. Some clear (very clear) water ran out (not white/milky but clean). Then some oil started draining very slowly and I put the plug back in. Is presence of water in there a definite sign that seals are bad? Could water have gotten in some other way of the years and settled in the bottom of the housing? Also maybe the drive is just empty and in need of refill.