Okay....we have some progress. I finally got some free time, yippy! I got in there and mine looks almost identical to the upper picture you have posted. And the filter has no sign of being a 'water seperating' filter; as the upper image notes could be an option.
So, I am thinking...I should likley get one on there...right?
It appears I have both the room and the slack in the fuel line getting to that point. I am inclined to get a fuel/water seperator and install it just before the fuel pump (that is called the fuel pump there, right?).
Sound like a plan?
Also...factory service manual ordered and should be here in about a week. Still looking for the right manual for the outdrive...preferably, a factory one.
1985 18' Sun Runner
140 HP Merc. I/O