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Thank you all for helping me out with my worries concerning the fat O-ring and all other issues you have solved for me.
My 18HP Fastwin from 1960 is working very nicely now, and my 10 feet boat is dancing across the water! It’s speed must be close to 30 knots. At least it feels like it’s running that fast.
My only concern now is that fuel is pressed up into the ignition system so it’s a little difficult to start the engine. After all I had som doubts about my crankshaft upper end which had a blueish color due to overheating of the outboard in the Powerhead. This was caused by a faulty Upper Water Tube Grommet that was blocking water from the water pump. So the Powerhead did not get cooled at all, and the extremely hot exhaust burned a hole in the engine block near the flange close to the exhaust tube. All this was messed up by the previous owner, and I did not discover it by the time of purchase. But had the hole welded, and the complete outboard overhauled with new pistons, rings and a lot of other new parts, so it’s ok now. I took a chance on re-using the Crankshaft, but I sure should have renewed it. But I did not find any new crankshaft online, and in my country (Norway) it’s very difficult to find parts what so ever for this oldtimer. If I had found a proper crankshaft I also would have to purchase new crankshaft bearings, rod bearings etc.