I can't offer much about the motor situation but I can add a bit about Morgans in general since I own a 1983 Morgan 323. No offense to anyone who owns an Out Island Morgan but they were designed and built much different than the others. If I remember correctly they were designed for the chartering fleet and people generally associate ALL Morgans with these Out Island's which leads to the "negative" comments about the brand in general, not realizing that Morgan built other types of sailboat's as well. The Out Island's were slower and more "tubish" looking and I have known a few owners who had build quality issues with them - hence them not having the best reputation.
I have a Morgan 323, which evolved from the 321, then 322 and then 323 and were all designed by Ted Brewer. Morgan also built a 38' version of my boat designated 382, 383 & 384 as well as some larger 40 foot and larger versions including a center cockpit model. These were built in much smaller quantities than the Out Island's hence no one really knowing too much about them. People see the "M" logo on my boat and always confuse mine with other types of boats because they didn't know Morgan made anything other than the Out Island line.
I don't want to sound like I am bashing the Out Island's as they definitely suit a purpose, have plenty of room down below and I'm sure there are plenty of people who enjoy them very much. I do know however that the others boats Morgan built such as the 323 were designed and built much different. In my opinion they are great boats, with really nice classic lines and built to a high level of quality. They are not perfect and do have their faults - my 323 has a D/L ratio of 314 and is not a good light air performer, however it is very stable in rougher conditions.
Anyway I don't want to continue rambling on but what I am just trying to convey is that not many people realize Morgan made more boats than the Out Island series and that these boats were actually designed and constructed to a much higher level of quality. People continue to be impressed when they realize my boat is a Morgan from beginner sailors to seasoned marine surveyors.
A few pictures of "Capricorn" my 1983 Morgan 323