Larry said: snip" the last
time we used the boat it started to overheat. The shop we had taken the
boat to told us that the outdrive was in rough shape - it had seen a lot of
sal****er over the years - and is pitted."


Larry, the overheating is probably due to the impeller having taken a "set" due
to age and just general wear and tear. Change out the whole pump unit
(impeller and basket) $100-200?. Could also be the exhaust manifold is
plugged..any idea when the exhaust maniflod/riser was last changed out? An old
boat used in salt and stored a long time....probably time, not too expensive in
material, lots of work if corroded badly. Do you have fresh water cooling? if
so, the heat exchanger could be in need of cleaning.
"Pitting" on the drive is common for a boat used in salt water. Very possible
it just needs cleaning and repainting (properly!) and while you are down there
check the zincs, etc!
The "shop" you went to might be corrrect in saying the drive is "rough" but
they make more bucks selling you a new one than painting your old one. Does it
shift OK? (good!) Is there any water in the lube?(BAD!)
Best wishes, and don't let others hold your wallet while your'e fishin'.
Mike