This thread is beginning to look like a run-a-way train. Can you imagine a new-comer reading this from a year ago, and then trying to play "catch-up" today?
I'm wondering if it would serve Dan (the OP) and the group here, if a new thread were to be started?
Begin fresh..... clean up the original information making it more accurate and detailed!
Include all that you can regarding the engine build.
Carb or FI, type of Ignition system (pretty sure this is M/C TB), etc.
Stay on task using the correct engine terminology, etc! ( polishing cyliners just doesn't cut it! )
Bring everyone up to speed on where we are today!
Just a suggestion!
Dan, a good P of E (process of elimination) must be done methodically and systematically, going down a well planned list........ one item at a time ONLY! If we do 3, 4, 5 items at a time, we'll never know which item rendered any results.
And I'd use caution when being advised. To me, it sounds like some of the info that you are receiving locally, is somewhat off base.
Has you harmonic balancer slipped, mark is no longer at TDC? stick sumtim into #1 plug hole and confirm mark at 0 deg when #1 @TDC.
Again, this would be important to check,
but NOT using that method!
The entire purpose of an accurate TDC marking, is to identify where our very critical Ignition timing is! This is MARINE Ignition timing....... not car/truck!
The camshaft (via the sprockets and sprocket markings) pretty much take care of themselves, when indexed correctly.
I've already commented on the PPS method for locating TDC...... that would be advisable, IMO.
Your call!
Buy or borrow a light with an advance feature
Find a timing light that has an adjusteble scale My sears timing light has a knob on the end that you can adjust for that purpose
In addressing both quotes above:
Great for today's automotive...... but I'd strongly encourage the use of a standard strobe type timing light, and mark off your balancer up to approx 35*.
There is NO room for error when Setting/Checking Gasoline Marine Engine TA...... NONE! Several degrees off, and we can easily create a Detonation scenario.
For ME, I want to see this in "Real Degrees" and in "Real Time".
Your Call on that! 
1. my distributor has 2 sets of numbers (large and small numbers). I have been using the large numbers since it is a normal rotatation + correct?
2. If boat is in the lake, and I am suppose to be 32 before tdc at 3700rpm is it ok to do that in the lake?
3. and if i have to move the dist to make it the 32 btdc, and then at idle it is not at 8btdc..........whats the next step or problem?
1. Please explain this. You have the M/C TB EST Ignition system, correct? Yes.... it will be CW rotation, as are all of these!
2. If M/C TB EST, you must use the OEM procedure while in BASE mode. You set BASE advance by changing the orientation of the distributor housing. The module supplies advance past BASE.
3. If static (low rpm) BASE advance, and dynamic Total Avance do not offer the correct numbers........ then your module may be incorrect for this engine.
Ok time to help my gurus understand some of your questions
and I do appreciate the help.....
1. motor compression after the rebuild was fine 140-150 all cyclinders
2.
originally the exhaust manifold leaked water into the engine. (milky oil)
when i winterized, I didnt know it leaked. when i tryed to start motor was locked up.
3. OK the noise was actually backfiring from the carb
(mechanic said it was most likely the camshaft). well i took the camshaft out to replace with a new one. but the original was just fine. After having the backfire noise still, I spoke with mechanic and he said maybe my timing chain was off by a tooth or 2. So i removed balancer,pump,timing cover
and rotated #1 to tdc. Low and behold it was off by 2 teeth (not lined up). So i fixed that and got it lined up perfectly. like a dumb ass I didnt want to pull engine, so i kinda forced the timing cover and gasket into the slot (I know dumb ass). That is why I do not have a good seal on the timing cover!!!
4. I got the leakdown tester to see if any of the valves were stuck since I did nothing to them, presuming they might have had a little water in them.
when I showed the heads to the machine shop, the guy said they looked fine. but he did not do any type of test on them. (wont use them again).
OK, so following the suggestions. I will do a compression test sunday after i make a starter switch. Can i just start the motor (with bad gasket).
And let it warm up for about 1 minute without water running??? And then do the test.
or do i need to fix the gasket first, and also run water???
Wow.... lots of concerns here. Not sure where to begin!
A quick, yet unsolicited, synopsis re; winterizing for future:
Each winter when I winterize my own, or a customer's boat, (and these are primarily V/P) I'll make engine fogging last on my list. Just prior to this, I remove the sea water pump impeller.
This kills two birds for me;
1.... the impeller is out of the housing for the winter, and will not take a "set" during the off season, whereas it will if left inside of the pump housing!
2... I can perform a very short engine "dry-start" during my fogging procedure (takes only 8-10 seconds to properly fog a Carbureted Engine).
This insures that NO residual water is left in the exhaust system to be afforded the oportunity of making it's way into an open exhaust port...... of which is what locked up your engine.
A dry start of only 8-10 seconds will not harm one item.
This is not speculation...... I've been doing this for years! Not one issue to date!
*********************
As for the
1 minute without water above..... you would need to be fully aware of any potentials when introducing cold water into a warm engine that has had
1 minute without water!
8-10 seconds would be OK. But 1 minute???? NO...... I would NOT do this!
Pretty sure that it would best serve you to start a fresh thread.
I'm sorta done on this one.... just getting a bit too crazy here for me!
Good luck.
