To post an update, I did not find what the problem was during last summer. I took the boat out of storage last weekend and I started it back up. My friend noticed that a module was smoking so we shut it down. Took the boat to a shop and based on the drawings I looked at, it was the rev limiter module. The mechanic that is currently working on my boat thinks that the small diaphram fuel pump could have caused the issue with the erradic rpms. I will post an update once I get the bill from the boat shop.
boyd, where did you buy the diagnostic tool from and for how much? if you do not mind me askIng.