These were great motors for sure, but like Frank says, you must make sure all the electrical wiring/harnesses/switches are in serviceable condition. That engine looks like it might have lived a tough life though…
Is this a fresh or salt water engine? Salt water engines are very difficult to repair due to rusted hardware and corroded castings. The salt water is real tough on the wiring and connections also. This electric shift engine is pretty much useless if the wiring is not in good shape. The generator has to work also.
So, where to begin…
You mentioned uneven compression….Do another compression test, can you make the electric starter work? Pretty tough to do a good compression test on this engine without using the starter motor.
Next, drain and inspect the gear lube. This electric shift engine relies on clean/water free gear lube in order for the electric shift mechanisms to work properly. There are two drain plugs in the gearcase. For now, just crack open the lower drain screw and see what dribbles into a clean pan. Milky or raw water dripping out spells trouble. No need to drain completely, all the crap will be at the bottom of the gearcase, reinstall the drain screw after letting just a bit dribble out.
Let us know what you find….D
