Well. I have not seen the result yet but the owner of the boat I'd like to buy instructed the local Yanmar dealer to repair the diesel. They opened it up, chipped out the scale in the water passages, cleaned up the head, replaced the head gasket, changed the temperature gauge sending unit, rebuilt the water pump and boiled out the mixing elbow. Raw water problem solved apparently.
I will be looking at it first hand on Wednesday and will close the deal the same day if it all looks good. This is very exciting.
Many thanks to the members of this forum for all the help and encouragement. I can't wait to participate more in these discussions.