I have a Coronet 21 fitted with a single AQ151 and 270 drive. The engine was supposedly reconditioned 150 hours ago but I've had a few problems since purchase a year ago. Firstly I had an overheating problem which hopefully has now been resolved. The boat is indoors at the moment with the leg in a water tank. So far I have fitted new top hose connector, raw water impellor, exhaust manifold, inlet manifold with weber conversion, pertronix ignition with coil and leads.
I have had a lot of difficulty tuning the new carb (38 DGES), having gone up in stages from size 45 idle jets to size 57 with no success. I have checked for air leaks but found none. Not sure what is going on here.
Then yesterday I found evidence of water contamination in the engine oil (grey and white emulsion and droplets on dipstick). Pulled the (recently overhauled) oil cooler but found no problem whatsoever. Followed with a cylinder compression test (dry and wet - no difference) and found unusual readings of 230, 230, 220, 175.
At this point decided to pull the head. Found that the number 4 cylinder and plug were blacker than the others, but the head gasket looks fine and there is no evidence of any damage, in fact the pistons and bores look like new. The number 4 inlet valve looks as though it hasn't been seating correctly (blackened seat) which may explain the compression variation but not why the other readings are so high!?
Also found that the cam belt idler pulley was seized, the camshaft was about 18 degrees off (36 degrees at crankshaft pulley), the distributor was a spline off and the cam belt HAD A TEAR HALF WAY THROUGH IT. Oh, and the number four exhaust port is very severely pitted.
If anyone can help shed some light on the above and/or advice on how to proceed it would be much appreciated.
I have had a lot of difficulty tuning the new carb (38 DGES), having gone up in stages from size 45 idle jets to size 57 with no success. I have checked for air leaks but found none. Not sure what is going on here.
Then yesterday I found evidence of water contamination in the engine oil (grey and white emulsion and droplets on dipstick). Pulled the (recently overhauled) oil cooler but found no problem whatsoever. Followed with a cylinder compression test (dry and wet - no difference) and found unusual readings of 230, 230, 220, 175.
At this point decided to pull the head. Found that the number 4 cylinder and plug were blacker than the others, but the head gasket looks fine and there is no evidence of any damage, in fact the pistons and bores look like new. The number 4 inlet valve looks as though it hasn't been seating correctly (blackened seat) which may explain the compression variation but not why the other readings are so high!?
Also found that the cam belt idler pulley was seized, the camshaft was about 18 degrees off (36 degrees at crankshaft pulley), the distributor was a spline off and the cam belt HAD A TEAR HALF WAY THROUGH IT. Oh, and the number four exhaust port is very severely pitted.
If anyone can help shed some light on the above and/or advice on how to proceed it would be much appreciated.

