Shadow -- my Motor is pretty much like yours --- I always wondered why there was the water mist in the Exhaust on Two Cycle Engines. when I was having problems with mine, I went to the Mechanics Corner here on CDC --- Cray and others there helped CURE my troubles ,, the wife had already said put a new Motor on my little 14 Ft Stick Steer tub --- I would install a new T-Stat to see if it runs better,,, you can always make it the same as the one in your hand