Re: Winterizing
1. Run the engine on the garden hose until it's up to normal operating temp (t-stat open).
2. Either fog the engine till it dies then drain it completely... all draincocks open, making sure none are clogged (might have to stick a coat hanger up there to clear blockage) and leave open.
-or-
Get a few gallons of the environmentally safe/non-toxic AF (See West Marine). Get a container that you can attach to the water inlet ports through a hose and place above the outdrive. An isolation valve is handy to have too. Dump the AF into the container. Open the isolation valve. Start the engine. When you see the AF coming out of the exhaust & idle ports, fog the engine till it dies.
Generally, leaving it in lay up with AF is better for prohibiting corrosion, but runs a small risk of freezing if there are any pockets of low flow that don't get much AF.
If your area is prone to hard freezes for extended periods, I would leave it empty. Corrosion rate is very slow when the temperature is low.
One other note, with an engine that size, you may not be able to put enough fogger in it to kill it. I couldn't stop my 5.7L squirting 2 cans of the stuff in at the same time. Once it starts coughing and smoking, you can shut it off and rest assured it's fogged OK.