1980 40hp mercury boggs down when put into gear

by brad durner

My brother bought a 1980 40HP Mercury for his boat. It idled a bit shaky when he first bought it so he put fresh gas, cleaned car and I believe adjusted throttle. It ran fine tuning HOWEVER as soon as he got it in the water and under pressure it bogs down from idle into gear. Just idling or once up to speed its appears fine,its the going into gear that sounds very sluggish and hesitates.There also appears to be an exhaust leak, pouring white cloudy smoke(possibly a dry rotted gasket?)Not 100 mechanically inclined but trying to help him out. Any advice would help greatly!

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