On Sun, 16 Mar 08, Frank wrote:
I made sure the water level in the barrel was well
above the water intake.

Make sure it's higher than the impeller. There's no mark on the
outside of your lower unit indicating where it is, you'll just have to
estimate. But some impellers won't suck up water if they're above
water level.
Second thing, remove the thermostat. It might be stuck closed. It
won't hurt to run the engine without it. If that's the problem, you
can replace it later.

Rick