Anyone know what is the best procedure for removing and installing an new fuel pump. I have enclosed a pic of the location and the mercruiser diagram.

Any suggestions will be appreciated.

http://http://www.mercruiserparts.co...ND+FUEL+COOLER

There is a bracket that comes up from the Cool Fuel system and attaches to the block right by the motor mount. Take those 2 nuts off and pull the bracket out and over the studs.
That will allow the whole cool fuel system to drop down past the stringer mount. Then you take the plastic cover off. There will be two small nuts that hold the pump and fuel cooler into the housing. Take those nuts off and the cover. Then the pump and cooler can come out of the housing. the 90 deg elbow just pulls out of the fuel cooler. Undo the inlet fuel line, unplug the connector and its out.
Installing the new one is reversse.
Looks like you have fairly good access to yours based on the pic you took. I have to stand on my head to get at mine.
Good luck