Correct.
The lanyard removed is a kill switch.
The shifter forward disengages the starter via the key.

Let me see if I can simplify the control box operation.
Lanyard removed is a kill switch, just like turning the key off.
When the shifter is not in neutral it disconnects the ability to operate the starter by way of the key.
Jumping the starter solenoid at the engine will start the engine if the key is on or if the wire harness is unplugged.

cool, so I just leave the key in the on position and jump out the starter ? Thx

No need to.
Jumping the solenoid turns the engine over. It bypasses the control box ability to engage the starter.
Key on or off it don't matter.
It's probably advisable to leave the key off, push the throttle full forward, jump the solenoid and do the test. This way you don't have to worry about the ignition igniting atomized gas from the cylinders if it happens to spark to ground from one of the plug boots.
I can't remember if this solenoid has 3 or 4 terminals. A 3 terminal has a hot, starter and key switch lead. The 4 wire also has a ground.
Basically you determine the key switch lead and hot, then connect between the two. Best done with a remote starter switch.
Careful not to confuse the ground (if applicable), it should blow the fuse at the engine and could do stator damage.

joker, I'm pretty sure your comp. #'s should be 95-100 lbs. I have been told/read not to expect #'s like 125-140 on that motor. I've done it by warm engine, having all plugs out, throttle wide open. Not sayin that's the ONLY way to do it....just how I did it....right or wrong.

I've not been able to find published compression numbers on any of the engines I've fooled with. I would like to know though.
Hearsay is the loopers do have a higher compression value and a less than %10 difference between cylinders is preferable on all engines.
Joker, I'd keep running the engine like it is. I'm not tired of this thread but really there's not much to worry about with what you've got. At least from what I see.

just took a quick peek over at iboats, no factory specs, just dialog amongst members there, those #'s seem to be anywere from 90+/- to 105+/-....the 10% rule being most important. Ask Skools out.....he knows just about everything on the omcs