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CHUCK
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    The problem with the severely pitted points is that it is harder to time the engine via setting the point gap.  Otherwise;  pitted points   (Maker Points) seem to work OK even though they look terrible.

    Where do you live where the insulator blocks cost $45.00?   They are available on marine engine.com.  If it turns out that you need a new stator and purchase the CDI one….they include the insulator blocks with the Stator.