DittoI just did a carburetor rebuild on a Mercarb and instructions point out that if the spring loaded needle is used on the carb you may experience hesitation or stalling on sharp turns. I don't have anything else to add technically, just wanted to point out this known issue in case it helps.
Ok.. so it's pretty impossible to get a picture of the leak. It's at the very bottom of the housing. I thought i was crazy for a minute.. the water wasn't leaking when i first turned the boat on. After about 2 mins water squirted, then started it's normal trickle leak. It's running out of the black housing at the very bottom, where 2 hoses go in. Looks like it will be impossible to fix or get a better look without the drive removed and viewed from the outside.