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Heat is your friend, remove the powerhead from the tower, recheck for stuck rings, yes I have seen a gear case stuck making previous owner think it was the powerhead. Also had a recoil stuck making owner think motor was junk…
Remove exhaust manifold. Spray or pour mystery oil of your favorite flavor, Kroil, PB Blaster, 50/50 Acetone/ Transmission fluid. drop that in the exhaust ports, not quite full, then apply heat, MAP gas is best. Heat it until the oil starts boiling. stop and let it get cold…repeat until the piston moves, you can turn the powerhead over and drop fluid in the bore thru the spark plug holes and do that as well heat it until the fluid boils. I spent weeks nightly on a powerhead.. it lost and now is a running motor. I have yet to NOT have this succeed.. 6 motors saved and counting. Keep a fire extinguisher handy, but that should be in everyone’s shop that uses fire makers… You will in time see the fluid “drain” that is a great sign…. the fluid will “evaporate” due to heat…just add more.
Good luck
Richard
http://www.richardsoutboardtools.com
classicomctools@gmail.com