Joey,I actually believe the gap is .040 assuming you are using Champion QL77JC4 plugs for your model. Georgie will verify! A black plug usually means weak fire, cold running engine (open thermostat) or a rich condition. Verify by switching it with one of the other plugs and running it to eliminate a bad plug as the problem. I've seen brand new plugs that were defective. If it still runs black, look for a defective coil shorting to ground through the lamination. Again, you can easily switch coils and see if the sympton follows the coil. Try running the engine at night on the flush and pull off the spark plug wire with a pair of plastic fuse pullers and see if the coil starts to do lightining bolts to ground through the coil lamination or the spark plug wire. As far as the water leak at the mating section of the gearcase to midsection it is nothing to worry about. Corrosion at the mating surface or where someone tried to pry the sections apart to drop the gearcase and created a small void at the mating line. There is no gasket or seal, its simply metal to metal mate up and your just seeing water pump bleed off and or some exhaust water discharge. Down here in the southern salt water latitudes its very common and means nothing.
they were jumping off the spark plug wire near the coil end all the way to the head. Nice pretty blue ones.
I would make sure the coil is from BRP and not a Sierra coil. I just like using OEM electrical parts compared to aftermarket but thats my personal preference.