I had to go look at the boat online to see what you have. There shouldn't be any water exiting the pipe. More than likely you have damaged (burnt) o-rings in the pipe flange.
This doesn't really explain the problem launching the boat though. Have you put a bigger prop on the boat?
I would check the O-rings. If they are bad replace them, reset the needles to factory specs and give it another go.
Like Peter said you could find all the help needed if you could visit the local gas guys.
Good luck!
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