RE: engine height The general rule of thumb is that the leading edge of the cavitation plate with the engine fully trimmed down should be even with the bottom of the boat if the engine is mounted directly on the transom. The engine should be raised 1" for each 12" of setback if mounted on a bracket. So in your case the engine should be 2 1/2 inches above the bottom of the boat. That's the general rule of thumb. Now adding my personal experience: we have found that when hanging a fourstroke outboard, we can usually raise the engine 1 additional inch. This should get you very close, you can fine-tune it from there.
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Specialty Marine 
26' Blackwatch - twin Honda BF225's |