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Not sure what you found...was it the small quantity of water in the bin, or the wrong oil? The two holes you mention are tiny in comparison to the amount of oil spewed.

It's got to be the 2 stroke oil, that's our common denominator. I've previously run both a Yamaha 30 and an Evinrude 115 on muffs and proper outboard oil with no oily evidence on the lower legs...

Well, that's a relief VC. It's a new (to me) motor so only ran it once and it was with Silkolene Comp 2 synthetic oil for two stroke bikes. I sure that's what caused it.

Mine does the exact same thing! Gearbox oil it isn't, so it has to be from the exhaust blowing through the leg/gearbox joint. Perhaps it's normal as we usually just use muffs for the Jap makes and no...

It's also important to check the compression. I have a 1995 Johnson 8hp and the top pot measures 120psi and the bottom 110psi. Closer they read to each other the better, with a minimum reading of...