You said you put new wires on it!!!
But did you install new boots at the dist cap? I replaced my wires but not the boots, and the results were exactly the same as what you got now. I had to install new boots and pack them full of silicone dielectric.
You stated you had black arcing type spots...
I would pack your spark plug wire boots were they attach to the dist cap with silicone dielectric grease before you spend anymore money!
Your symptoms match what i had to a tee of what i had on my 1969 85hp
You really need to find out if your spark is strong enough to start with! purchase an adjustable gap spark tester and set it to 3/8in. then check spark at the coil wire. If spark wont jump 3/8 at the coil, diagnose that first! If it does jump 3/8 at coil wire, then proceed to check at each spark...
You could try unplugging the round electrical connector on the engine to isolate the engine from the boat wiring. then jumper 12 volts to the power pack and then jumper the starter solenoid to crank it. If it starts and stays running then you might have boat wiring issues
So it did start and then die and not restart1! when it won't restart, do you still have spark at the plugs? spark should jump 3/8" at the spark plugs. get yourself an adjustable spark gap tester. and get a OE service manual for your engine
If you have 3/8" spark but not start, perhaps clean carbs
I went thru this very problem with my 1969 85hp evinrude last year! The info that Crosbyman gave you is top notch. Use it to get you to the point were you get a spark at the coil that will jump a 1/2"gap.
Then i found was spark plug wires this old will need to be replaced due to leakage. I had...
Are any other mid sections and transom mounts transferable to the 1969 engine? I looked at parts diagrams and don't see anything with tilt until the 1977 models