Is this engine incorporating a VRO or has it been converted back to a 50/1 fuel mixture usage?
Did you thoroughly clean all the carburetors... including the high speed jet that is located horizontally in the bottom center portion of the float chamber, way in back of the float chamber drain screw/bolt? That jet must be perfectly clean!
Compression of 110 is okay. Spark plugs should be Champion QL77JC4 plugs... keep them gaped at .040 until all is well, then drop the gap down to .030.
With all s/plugs removed, the spark must jump a 7/16" gap with a strong blue lightning like flame... a real SNAP! Does it? The stator under the flywheel is the beginning of the ignition system, if there is a sticky looking substance dripping down from it upon the timer base and/or powerhead, replace it as that indicates the stator has failed and this results in a voltage drop to the powerpack capacitor (weak ignition).
You indicate that the engine starts and runs perfect on a flushette BUT will not start when in the water. This relates to the following cranking problem:
(Engine Won't Start or Hard Starting In Water)
(Joe Reeves)
The Evinrude and Johnson engines, starting in 1973, have what is called Magneto Capacitance Discharge ignition, self contained, not dependent on battery voltage. The engine must turn over at least 300 rpms in order for the flywheel magnets rotating past the stator ignition generating coils to supply approximately 300v AC to the powerpack(s), which in turn is needed to supply power to the coils etc etc (spark).
In the water, exhaust back pressure is encountered due to the fact that the exhaust housing (housing between the powerhead and the lower unit) is filled with water. This would drag down the needed rpms, affecting ignition.
Normally the clue to this type problem is that the engine starts fine on a flushette (hose), but is very difficult to start when in the water.
Should this be the case, check the battery, clean and tighten all conections (use a wrench or pliers, not your fingers). Any cable that gets overly warm or hot indicates either a loose, or tight but dirty, or internally corroded cable. And of course check the starter itself.
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