hi jb,i had the same problem with mine the first couple of times i used it.you have to remember that the carb is set to be on the rich side from the factory for break in,as you can damage the new engine if its too lean.when i encountered this problem,i leaned out my high speed needle one eighth of a turn,and it helped alot.i think the combination of rich carb settings and a tight new engine when placed under load(in the water) causes the lazy responsiveness.im just wondering how many tankfuls have you ran through your boat,as im wondering how much its broken in.as far as water in the boat,it usually comes through the flexcable tube,thats why they recommend you grease it regularly,as it also provides a seal to keep water out as well as lubing the flexshaft. hope this helps.