63 johnson 5.5 problems

[hippie]

picked up a real clean 63 5.5 the other day, wasn't sure if it ran but couldn't pass up the price. Get it home and clean it up, try to start it but nothing. I know a guy who works on outboards and is very good but I wanted to try and fix this for the enjoyment of it. It would be cool to take an old motor and get her running. I'm retired and got the time to tinker and though it's still not running I'm having fun playing with it!
Here's what I did so far
1. cleaned out fuel tank well and put in couple of gals of good fuel with
proper mix, didn't start, and got fuel hose leaks
2. replaced all fuel hoses, still won't start
3. shot some starting fluid in carb, won't fire
4. checked spark by pulling plug, hooking to wire and placing against block,
I see spark but motor won't fire
5.check fuel pump by removing hose to bowl and pull starter rope, she pumps gas also pull each hose to make sure got flow throughout, all good, won't fire

Note: Each time I pull rope a lot I can see some fuel come out exhaust, is this an indication fuel is getting into the cylinders?
6. pick up carb rebuild kit and go through carb which was pretty easy, I thought it would be much harder. soaked carb body in carb cleaning solution then assembled it. Got some online advice about the needle valves so evrything should be good, put er together and pulled the rope, nothing!

I'm starting to get ready to take it to my buddy but I'd love to make this thing run by my own hands, guess it's a guy thing. Any advice guys?

[boats.net]

Check compression, post your results. It should have fired up with the shot of starting fluid.

[hippie]

compression?

how would low compression keep it from firing? Not questioning but would like to know explanation for this.

[boats.net]

No or low compression would mean the engine will not start.

[hippie]

OK, got her running!

checked compression which was about 60 to 70, pulled the flywheel and replaced the coils and condensers, put everything back together. hooked up the gas, pumped the ball up and started pulling, She fired right up! WOO HOO! She runs good but will stall when I throttle it down. How do I adjust the low end idle? For it to low idle it has to sit at about the start position, when turned down to shift or slow position she stalls. Also, there is a lot of dark oily liquid runnning down the lower unit while it runs, any advice what would be causing this?