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Compression Test Results; Thoughts? Thanks!

That's a bit low for a 70HP. Even if it's an inaccurate gauge, the 25PSI variance from bottom to middle is the most concerning. I'd suggest pulling the head to inspect the cylinder bores and conidition of the pistons. While it's off, check for flatness, clean all surfaces, then install a new gasket and check compression again.
 
No surprise on #2 being low as it happens a lot.-----Remove cylinder head for inspection.----You may not like what you find.-----Does tell tale hose come off the side of the block or the top?-----Was water pump kit 0432955 ever installed ?
 
Tell tale still off the side. Only recently did I learn of the move to the top. That is part of my plan today, if I can ever get the %$#* lower unit off.
Thanks!
 
<p>
Don't worry about the water pump at this tiime.----Step #1 is to remove cylinder head for inspection.------The service bulletin came out in 1994 to move the tell tale.-----It is no surprise that some have not been done.----These motors are so good that they rarely end up in the Evinrude repair shop !!</p>
 
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