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I haven't had a chance to personally inspect it (my dad was in it yesterday when it happened), but if this is the case, are we looking at a replacement instead of a repair? I understand it has a lot to do with just how much damage the rod caused, and compatible power blocks on eBay are anywhere from $300-$900 for this model. Thoughts?
No way of telling without inspection. However, if it can be rebored and an oversize piston put in, that might be the way to go. You don't have to do all 3 cylinders, just the one.
You probably also want to rebuild the carbs - it's likely that the one on the cylinder that blew was running lean.
Unless the rest of the motor is mint I would look to upgrade. start looking at craigslist and other outlets for whole rigs that you can rob a motor from then get what you can from the donor boat.
There is another option here.
a few years back a rod cap came off my 40HP Jonny.
It was a similar issue to yours. I picked up a replacement power head on Ebay for about $50. It was very instructive.
I swapped out the crank and piston assembly. My bores were in great shape. I even swapped my ring onto the replacement pistons. Added a new head and bottom gasket. I took a chance using the old rings without honing. It all worked out great! I never would have guessed you could reuse rings like that, but it had great cyln. pressure.
On the other hand I would have never guessed that the nuts on the rod caps with back off after 12 years?