Drain the lower unit and see if it had grease or water or if it is dry. See if you can wiggle the prop back and forth a bit.

Take the cowels and gastank off so you have access to the flywheel. I like putting PB Blaster in the spark plug holes to soak and the after a bit try to rock the flywheel loose with a strap wrench.

Thanks, will do. Lot of sentimental attachment to this motor. Silly, I know but still......

Not silly at all. I think I bought 4 similar Elgins trying to get enought parts to fix my Dads 1946 2-1/2 HP Elgin. Some of the engine is from his original motor. I am sure even if you need some donor parts (even a whole power head) you will still be happy with your labor of lover.

Got motor freed up & lower unit checked out. Miracles still do happen. Now on to getting it running. Carb is cleaned. Thanks for your reply.

I am working on one at the moment myself. I bought a parts motor just in case as well. Let me know if you come up short on something or another.

I am just starting on WG4, serial no. 726497. It is frozen. I haven't ran it for 20 years. Does anyone know of a source for parts, like rings?
Thanks

Get rings here.
http://store.oldmercs.com/category_s/85.htm