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1978 Evinrude 150 Reclaim help

So first step in me rebuilding my 1978 evinrude 150hp v6 was to get the motor started. I bought the boat and motor knowing it would start, but wouldn't crank. I checked spark and compression and checked out. Fuel was fine. Replaced spark plugs to correct ones and it fired up. The next day i went to the lake to give the boat a spin and a few things happened:
1. The trim motor was stuck in the up position, continuously trying to put motor up. Resolved (temporarily) by removing the fuse and disconnecting motor and dropping motor with the included manual screw. Will return to that topic later.
2. When i tried to holeshot, the engine would rev, the propeller sounded like it was spinning up slowly then would catch and take off, but it didn't sound good. I thought it was just the propeller being too aggressive and catching. When i got back, first thing i checked was the lower unit oil which was chocolate milk. I failed to mention that before i took it to the lake i had drained and refilled the lower unit oil.

So in current repairs, i have replaced the trim motor solenoid (motor lift issue fixed)
Replaced spark plugs. Changed out one of the power packs, as when i tested it initially, 2 of the ignition coils didn't have spark.
Replaced and pressure tested seals in lower unit, held around 7 psi for a bit (i didn't time it but it didn't seem to leaking) so hoping that is fine.

Let me be clear. I am not a mechanic of any sort. I am a Chef by trade. I would consider myself mechanically inclined (including a degree in physics) Everything i have done so far is from posts here (or BBC boards) or youtube. If i don't get the terminology right or technical term correct, i apologize.

SO back to why i am here asking for assistance. When I replaced the gasket on the shift linkage (? i think thats what it is) i had to take it apart, and tried to put it back together and thought all was well. When i tried to put motor into gear, it would only shift into reverse. When trying to engage forward, it feels like it's stuck. I was trying to find a resource that would have instructions or a diagram of how the linkage works. I also have the "service manual" but doesn't mention anything about the shift linkage for the lower unit. It doesn't even seem to have the diagram of the exact motor i have, there are several that are pretty darn close, but not this one. Any help would be appreciated.

Oh and the boat that the motor is on is a 1979 Terry bass boat (17') that I purchased for $850. (don't judge me)
 
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Few question at a time for you.---Did you set shift rod height?---Did you replace shift rod o-ring ?----Model # of your motor.---Pictures of your linkages.
 
When i disconnected lower unit, i left it in reverse (so when i put the lower unit back in, i could turn prop to mesh with the engine.) Model number of engine is 150849S. No picture until i take it back off.
I replaced the gasket that the shift rod goes into, the gearcase gasket assembly (part number 098132, which i ordered here on marineengine.com) the only o ring was the one sitting on top of the gearcase assembly (i think) but i did not replace that. I am unsure how to set shift rod height (or i might have when i left the lower unit in reverse)

https://www.marineengine.com/parts/...50849S&manufacturer=Evinrude&section=Gearcase
part #60 was the part i took off and replaced the gasket (#23)
 
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Perhaps the shift cable needs adjustment or the thingy at the top of the shift rod needs adjustment.----There is an 0-ring inside part #60 that needs to be replaced.----And what do you mean in post #1 when you say ---" rebuilding my 78 Evinrude 150 "
 
By rebuilding i mean getting it to run and actually run on the water. I will be taking apart the carbs when i get some time and rebuilding those, i am just getting it back up to work and running.

The cable was fine before i disassembled and i didn't see an o ring inside the cover and seal assembly (#60) and doesn't have a o ring that i can purchase separately. There was a hefty (about 3/4-1") foam-ish o ring above the cover and seal assembly.
 
Ok, i can accept that, since you deemed it necessary. found it... #61 on the list. I didn't see it, but i will look again when i remove it, was that the important part? I had thought i had replaced it, but it seemed to connect to one of the lower parts, was i mistaken?
 
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Not at all. So what was my mistake when I put it back together? There were 2 slots about 1" apart and 90 degrees offset from each other, so I mount the shift rid into one of these?
 
Are you suspicious of the good free advice here ?

The only advise was to make sure there was an o ring. I had made sure there was an o ring, but no details on it's usage or placement. So pardon my reluctance without getting any sort of clarification or actual advice. just saying there needs to be an o ring isn't particularly useful when there is no context.
 
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