.32 what? Dynamite or OS?
OK, assuming that it's a Dynamite that we're typing about and that it's in a Pro Boat boat let's take it from there.
First, I'd port match the exhaust as the header blocks off the flow of the exhaust gases hurting it there. Pull off the header if the engine has been run and you'll see where the stains will show you what needs to be removed. A Dremel with a short stack of cut-ff wheels (use new ones as they'll all be the same size) to carefully remove material as you don't want to go too deep into the flange and go through the header. You want to angle the cuts in.
Next, the carb. The thing was made more for a plane than a boat so it's choking the engine. you're going to need to find a carb with a larger bore but one that will fit the engine also. A few in here have already replaced their carbs. I don't want to say which one they used as hopefully they'll see this thread and reply with the correct one.