I've been here before ....... so I may be able to help you out. The muffler can not be considered to be a surge protection from a slug of water getting into the turbo/exhaust/valves of your diesel engine. You are going to need to figure a way of getting the exhaust at least 12" above the waterline before turning "down" and exiting out of the boat. 12" is the minimium recommended but I have seen successful applications with just 8" of rise.
And you really must have a surge tube AND an 8-12" rise. Anything less and you are gambling with a destroyed turbo and saltwater injestion especially in a small boat.
Have you considered using an "offset exhaust"..... something other than a CL installation such as coming off the turbo and making a 90 degree bend to port or starboard..... if you can do this, you will also have room to install a surge tube. And going 90 degrees sould also give you enough room inside the engine box to make a Stainless Steel exhaust riser giving you at least 8" rise above the WL before you inject the cooling water.
If you need additional help, feel free to ask. I've built several diesel exhausts.
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The Idiot Who Re-Built the Burnt-Up 35 Duffy
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