So with this engine I should run a full synthetic oil, not a blend?
Yes.
The only acceptable blend is the Mercury Performance Blend, which is their high performance oil and usually has to be ordered. Most dealers do not carry it.
The Penzoil is the most economical and usually the easiest to find. Walmart sometimes carries it, just depends on your location. If they have it, it's usually around $25.00 a gallon. The other brands, Klotz & Alisyn usually run about $40.00 a gallon.
32:1 is acceptable, but you may find it to be a little smokey at idle. If it's unbearable, you can lean it down to 40:1. I've always run mine at 40:1 and I'm going into my 4th season with this particular 260. :wink
A bit of advice, when you tear the motor down after this year (not matter who does the rebuild) you put 6 brand new pistons in it. If that motor is original (which it sounds like it is) the pistons are "side pinned" and after years of abuse they sometimes will become loose and either sink into or fall out of the piston which will create a bunch of damage. Anyway, the new pistons (either factory Mercury or Wizards) are now "top pinned" and are much more reliable.
Good luck with your new toy, have fun, and be safe. :beer: