80 Ski Throttle

Help a new owner out and explain the purpose for the small round adjustment piece located just in front of the throttle lever which is actually part of the housing. Is it the choke and if so is the engine choked if pulled outward?

Actually, I think the engine will start with the button/knob in either position so long as the throttle is closed (i.e. lever straight up). Pull the button/knob out for neutral, then you can rev the engine in neutral by moving the throttle lever back (towards the stern).

When starting a cold engine, you should pull the knob out, pump the throttle once or twice. Move the throttle lever to straight up (neutral) position and start the engine while the knob is still out (neutral). This will allow feathering of the throttle to keep the engine running if the choke is not properly adjusted, etc.