Not yet, been busy with work and family. Since I'm done for the season I'm not in a big hurry. I'm still researching engine builders and HP recipies.

The smoking hole ......

I noticed the floor under the back seat. The edge is bare wood. Look were that brown strip is. It should of been at least coated with something.

The mechanic recommended the following....

1. New Crate motor.

2. Bore block .030 replace rotating assembly and replace the port head. There was definitely water leaking through the exhaust and he said that one of the valves was burnt. I wonder how the MPI and computer would handle the .030 bore?

I like the sound of new better. I talked to another local engine builder yesterday. I will keep you guys posted.

An HP525 would be $weet Dave.

Hey Dave,
Are the head castings shot?
You can have hardened seats and larger valves installed.
How is the block?
Boring it 0.030 over does not remove that much.
Are you going to stay with fuel injection?
There are proven packages with your Merc. MPI that make 500HP.
Give your intake a good once over though, they are normally the first thing to rot through from the salt water...

JK at 1800runsnew, sells a nice re-manufactured 500HP/509 for $5600 and new 435HP/502s for $5200.
I believe that your MPI will work on the stock 502 without a change and on the 500HP with a fuel pressure increase, and slight ECU changes.
If you decide to go carb, I have an unused 502HO aluminum dual plane intake you can have.

Good Luck! and please keep us in the loop; I love to talk about this chit...