Originally Posted by philpot
I have just looked at the prop which is printed 3-91/4'' x 11''. Not sure what the three is unless it means 3 blade but that is pretty obvious.
Yes, 3 blade, 9.25" diameter, 11" pitch.
From your pics, I'd say the motor is too deep (Loco would disagree.) But, as a first step in figuring it out, you need to get the tubes and keel (and floor if applicable) up to the correct pressures, otherwise you're troubleshooting a setup that will be all over the place anyway.
Once there, see how the boat performs as is, then start making small changes and see what improves the situation and what makes it worse.
Pics didn't show: Is your motor bolted on or clamped? If clamped, it's easy to adjust (at least upwards, which I suspect is what you'll need); if bolted, it's a little more work but still do-able.