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Do not try to replace the drive extention bearings, you will never get it back together! Believe me I tried. They were sold as a unit from Mercury. If they are tight or sticky soak in gas, turn (after a few days) & repeat until free then replace the grease fittings & grease until it turns easy & smooth.Several friends at johns old merc told me thats what they all do. Everyone misses the grease fittings on the drive extention & the bearings dry out. Be patient & soak for a fewdays! Also the distributer and rotor are upside down as you see. A Mercury rotor pulling tool is required to remove the rotor from the shaft or you WILL BREAK it I promise you. What color is the distributer cap? Some years are much better. Please replace the condenser while your there. I would bet its bad from age. Very few know to adjust the points spring tension, but its in the book, too stiff it will wear out the rubbing block, too weak & the points float!. The testing toolMAYbe hard to find but Mercury made one. Check the coil with a meter ohms scale secondary winding & look for cracks or little blow out pin holes on the outside. If you need more help send me a message here, I check every few days. Jeff
P.S. Replace the drive belt too! Be patient building the mag & be rewarded with a reliabe motor!