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Yes, the circled items in your diagram are the friction block and spring, should be the same for all years.. David makes a great point, the friction block is oftentimes stuck up inside the twist grip handle…You may need a long pick to pry it out….Usually the old lube has dried and the friction block is kinda glued inside the handle… Be very careful reinstalling that twist grip retainer screw, those love to strip and are an odd size thread….
OK, so you did not have the powerhead apart, just the head off, and noticed some scoring, this is probably causing the uneven readings…If you take the head off again, go ahead and scuff up those cylinder walls with some fine emery/crocus cloth…Helps take the glaze off and might help the compression a bit…Yeah, I know, pretty crude method indeed, but we are not dealing with any delicate/precise machinery here…Just be sure to remove any dust/particles with carb cleaner spray, then re oil the cylinders generously….I don’t recommend pulling this powerhead apart and “rebuilding” it.
Let us know how the gear lube looks. Try rotating the flywheel with the plugs out/recoil off to see the if the magnets are dragging on the coils causing the mag plate to retard on its own….
Once it is back together, try to post a video of it running…