Well a little update for you guys, turns out the inner exh gasket was the incorrect one (for a flatback 115). Replaced that, and no more water in the cylinders. However, she still wouldn't plane out on the lake. Tested for spark, no spark on cylinders on the stbd side. Troubleshooted it out to a bad power pack, replaced the power pack and it ran like CRAP - misfiring and surging and such! Went through the entire ignition system checking coil wire colors and such..on a suggestion from an Iboats member, tried switching the plug leads on the malfunctioning Stbd side and WOW! Started and ran like it's fuel injected. Now, the wiring is now incorrect (orange&blue coil wire leads to bottom cylinder) but the motor is running excellent. So, I'm not going to question this.
Now onto my cuddy re-finishing project...it never stops