Thank you all for the replies. Sorry I went MIA but I was having problems figuring out how to reply to all of you and I am computer dumb. Also this boat was driving me nuts.
She is a 1999 signature 260. I bough from and older gentleman who gave up on her after installing a new engine block (a mechanic told him he needed one) and couldn't figure out why the alarms and overheating also after reading all the paper work from multiple shops I concluded that he had too many different people working on her so I got stuck with a few issues. Here is a list of what it took to make her run right
Serviced outdrive, replaced below and gimbal bearing.
Fuel smell.....checked entire fuel system found small leak in gas tank ( cut floor, fire wall removed and install new one ) what a job.
She wont go over 3000 RPM. checked fuel system again (found fuel pump looking tire) replaced fuel pump, cooler, etc.
Still she wont go above 3000 RPM. checked Electrical system found wrong plugs. replaced all plugs, wires, distributor, rotor and cap. Now she moves.
Now that she goes above 3000 oil pressure drops alarm goes on. (still haven taking her for a good run so no issues with overheating (yet) ). plugged diagnostic tool confirmed it was low oil pressure alar. mechanic changed oil and filter problem solved.
Took her for another ride, temperature started to rise 180 - 195+. checked all houses, ricers, manifolds, oil cooler, replaced thermostat and raw water impeller. took for a ride and temp continue to rise again.
Ordered Groco true hull, valve and 90 elbow. new raw water hose and installed and cut hose at the outdrive. (need to add a sea strainer).
Took her for a ride and she runs great. I want to add a fresh water engine flush any recommendations??? once again thanks for all the advice.