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No. The M60C uses a 4-wire sender. That gauge is for a 1-wire sender (to ground).
That dark stuff is sludge. Just changing the oil more often will eliminate that.
Any vacuum being held is a good sign; if the reading slowly
My brother ran a Mark 25 with a deep score like that for years. You'd loose a bit of power, but she'll run surprisingly well. Those scores need to be
One more thought. When your done with your repower,contact your insurance carrier. You will have invested considerable $ in your 30 year old boat. You