If there is a 'LOT' of valve step play, the most evident thing would be lots of 'blow-by' out the valve cover. Could even show blue smoke out the exhaust. But this all depends on how loose the exhaust valves are...oh, you didn't specify intake or exhaust valve, still, the effects would be pretty much the same.
I'd still check the toothy thingy. I had the same problem and I hashed it out with Geo(GVP). He pointed out the module thingy that the coil and ECM are connected to on the distributor(I think it was the green/white wires).
My boat is a 1978 so the ignition system was the basic points distributor. Switching over to the TBIV had a few connection differences and getting the best ECM was a trial and error but over all, the TBIV has been great over the last 15 years.
I'd still check the toothy thingy. I had the same problem and I hashed it out with Geo(GVP). He pointed out the module thingy that the coil and ECM are connected to on the distributor(I think it was the green/white wires).
My boat is a 1978 so the ignition system was the basic points distributor. Switching over to the TBIV had a few connection differences and getting the best ECM was a trial and error but over all, the TBIV has been great over the last 15 years.