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I have a 390, when I try starting it, I hear a click and all power is lost, (dome light goes out, radio doesn't work). When I disconnect and reconnect the battery the power is restored but try starting again it does the same. Voltage regulator and solonoid are new.
A strange problem...is it possible that the wires are crossed up on the solenoid? The wrong solenoid? Is there still 12 volts at the battery when it loses all power? Does the cable arc when you unhook it?
If the starter is shorted out, it could cause a loss of power to the rest of the circuits, but it would arc ALOT when you unhook the battery, as well as cause some very warm battery cables.
When you turn to the start position on the ign switch, that normally "unhooks" the rest of the unneeded circuits, maybe something with the switch?
This may be as simple as a corroded wire somewhere. I've seen this happen many times that you will get a connection until you try to draw any serious amps....like when starting. I've seen where the positive or negative wire will be corroded where it goes into the battery connector....you can clean the battery post and the connector but it still won't work because the problem is between the connector and the wire. Also, a loose connection can cause this. I'd go over all the wiring from the battery negative to ground and the positive to the solenoid and the solenoid to the starter. I'll bet you find the problem is either a loose connection or corrosion somewhere causing you to not have a good connection.
Sound like a loose or corroded connection at the battery or on the engine end of the ground wire or the solenoid end of the main wire from the battery positive. This is a classic boat problem, due to the high corrosion enviorment.