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Greg
 
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Mid size Mercs have a known but largely unacknowlaged problem with the
gasket/grommet between the leg and the powerhead.
It took them about 6 months to finally agree my 60 4 stroke was broke.
Have you checked the water pressure?
If it is much below 3 at idle or ~17 over 4500 RPM you should get it back to
the dealer.