How far would you go to fix this 1973 9.5 Longshaft with controls?

I have a boat with a nice running 1973 65 HP. I painted it original and looks nearly new.
I picked up this 1973 9.5 Longshaft which would be a perfect kicker, but it has issues.
Most by themselves would not give me pause, but being there are so many...
It also has some type of after market remote throttle and steering control setup.
http://s1130.photobucket.com/albums/m536/jwarner4933/1973 9point5 HP Longshaft/
Album is here.

The laundry list is long, and likely to run $500 or more.
Compression is 48/42 dry, and 55/50 wet.
Broken tiller handle. (I will try HTS-2000 on it)
No spark on either cylinder.
Broken low speed needle.
Exhaust manifold leak. (I put hose pressure up the tube). Water came out in the places it should, plus the manifold. (Will water pump have the same pressure as house pressure?)
Broken lower unit bolt.
Several non factory bolts/screws.

I was told from the previous owner, that it ran, but didn't pump water.
The lower cylinder paint looks a little browned, but it is the higher compression cylinder.

I do have a parts powerhead from a 1970 Johnson 9.5.
How many of you would attempt this?

I guess if the lower unit oil is full of water that may be my tipping point.
I have it off, but haven't gotten to the water pump yet.
Being a long shaft there are some extra parts in there I am not used to seeing.

I would take the lower unit apart first.------Then inspect bushing above the pinion and the corresponding bearing area on the driveshaft.------Then make decisions based on what you see.---------The 9.9 from 78 and up were a far better motor and readily adaptable for controls.-------------The 9.5 model was never designed to be used with controls.-It was meant to be run on a 12 / 14 foot aluminum boat.