TOPIC: merc 400 Starting problems

Working on a 61 400 but it will only start in forward (water sprays all over the garage), it doesn't start in neutral. I can move the mag about an inch with the lever but it doesn't fire. Opened the control box thinking maybe there was a limit switch or something but doesn't look like it. I have adjusted the cable at the motor but nothing seems to help. Would appreciate any help
Thanks

Please take the prop off before going further.
Have the ignition key turned off and the spark plug wires removed before touching the prop.

After that,...we will need more information.
When you say that it will only start in Forward gear,...Are you saying that the starter still spins the flywheel in Neutral, but the beast won't start - or - are you saying that the starter won't spin the flywheel in Neutral??
If the starter still spins the flywheel in Neutral, but the beast won't start - check the linkage in the lower pan to insure that the Shift link is in the proper position to allow the throttle link to go forward into the notch in the Shift link so that there is some throttle applied.
If this is all aligned, and no one has monkeyed with the timing belt, ant the beast only starts with more than normal throttle advance - I would suspect one of two things.
One being are the chokes fully covering the carburetor throats?
Two being are the points in need of a polishing so that they will throw spark at a lower RPM?
Any more thoughts or observations will be helpful in drawing conclusions to help.
Thom

disconect the kill wire on the mag i have seen them short out in centain positions.