Yup. Overheating (and frying the top cylinder) is a major problem with those engines. I run them exclusively on my little boat--got several of them--and have learned a trick or two:
1. The impeller is too small for that engine, which needs all the cool water going through the power head it can get. Instead, some boob at Mercury decided to send some of it through the fuel pump (for an improved idle? Didn't help. Trust me.) You need to remove and block off this line so ALL the water goes through the power head. Remove the fitting (under the PH on the right side in the exhaust adapter plate) and screw in an 1/8 inch pipe plug.
2. The TOP carb should be running a .0785 jet (or thereabouts) where as the lower carb should have a .072. If not, change them! The jet is conveniently located inside that 1/2 inch (wrenching) plug at the bottom, of the carb.
Jeff