Thanks for these replies, and sorry for the delay getting back into the site.
1. For clarification, "making oil" is a mechanics term for gas getting into the crankcase and increasing the amount of 'oil' in the engine. Water in the oil is easy to see.
2. The low initial compression and leak down #'s I think was for the purpose of selling a new motor. I watched the second guy do the tests to get good #'s.
3. This motor doesn't have an internal fuel pump and there isn't a diaphragm on it. There is a low pressure pump for getting gas out of the tank to the VST and a high pressure pump in the VST for the fuel injection.
4. If the VST overflows that goes up into the canister which overflows through a tube into the lower engine cowl and into the water.
5. The 'Yamaha' mechanics tech book says 5-6k rpm is normal. I'm at 5,400 rpm. And, yes, 40 mph is not a secure feeling ride with this boat. It slides a bit.
6. As it is now we are 'supposed' to check the fuel pressure regulator this week.
7. If it tests good then I'm going to see about the prop suggestions I received, since that is relatively cheap.
8. Lastly I'll consider the tear down. And I will use a reputable shop to do the work. 610 hrs on it now.
Benton
:sad