1. I HAVE A SMELL OF GASOLINE IN THE OIL AND THE OIL LEVEL RISES AFTER SHORT PERIOD OF RUNNING ENGINE(15-20 MINUTES) I also have gasoline in the exhaust water, it leaves a slick on the water behind the boat.

Your symptoms are very consistent with a failure of the diaphragm in your mechanical fuel pump. The fuel that is normally contained above the diaphragm is likely leaking through the diaphragm and draining in through a drain hole in the block, under the mounting flange of the pump. I would not use the engine until you remove the pump and replace the diaphragm. - Updated: May 26, 2004