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The 1963 200 is a real icon motor for Mercury. It is one of my favorites! (mine is in my avatar) They were a transition motor for Mercury, first year going back to full gear shift, last year of the cloud white paint, and the large cast Mk-28esk top cowl. A great looking motor and great performer.
As for the issues, you really can do a lot of testing with ah ohm meter. According to your serial number, yours should have the new style Phelon magneto. These are good units. The points need to be clean! Clean!!!!!!! Testing them with an analog style ohm meter works best. You have the correct service manual. it should help with this. Also, the water pump impellers are hard to find, but you can use one for a MK-25 and file the key slot square. Test the coils for proper resistance, and then check the points also. As for removing the coils, you don’t remove the laminates from the stator, you pry the coils off of the laminates if needed. This is easier than it sounds. Good luck, and welcome to the club! Keep us posted, I will help as much as I can.
Steve