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ignition problems?

I have an 89 omc 3.0 ltr cobra and outdrive. I have tried to get it ready for the water this season but seem to have a lot of problems. I replaced the points because I couldn't get a spark. It seems be a common issue with my boat. It runs now but really rough, and my tachometer seems to be way high. Around 2 grand at idle. Don't know why? Is there an easy and safe way to abandon points distributor. Or a simple mistake I'm making to have these problems?
 
Oh wait, now I have no water coming out of my ehxaust. I'm assuming a impeller will be on my parts list. I'm just gonna hope to be at the lake by summer of 2013.
 
Replace the entire dist and u will need a new esa. Or u can wire it like a merc. Pull the long hose that comes in from the transom off the t-stat housing and with the drive submerged not on muffs start the engine see if you have good water to the t-stat. Do this for only 10-15 seconds quick shut off the engine.

Good water to the t-stat it ain't the impeller in the drive. Maybe the t-stat or the riser.

No water to the t-stat maybe it is the impeller or the drive is clogged. Or the water pickup is clogged.

wire it like a merc
 
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