I'm with everyone else on this one (to a point).
Mercs 25W40 is a just a mix of 25 and 40 weight oil as stated above. Average that and you get 32.5 so, I think your fairly safe to run 30 or 40 weight. The only thing about 40 weight is that this time of year it flows like mud. So, if you're doing a little late season boating it might be a good idea to switch to a 30 weight for start up protection.
I've used SAE30, 40 and Mercs 25W40 - I think they are all about the same. Whatever you use, make sure it's good quality.
For your oil change intervals, it really is going to depend on how hard you run that engine. If you're on it all the time, you best be religious with the oil changes. Remember, GM built these engines to put in trucks. So, while the engineers may have pondered marine application, it wasn't their driving motivation. All things considered, the engines survive the punishment really well and don't fail that often. Usually they fail due to neglect - which i doubt will be a problem here!!
My concern would be the seawater pump - they do fail often. My suggestion would be to change that once a year (spring). Last thing you want is that coming apart at 60MPH.
I do have a question about the synthetics though and i'll throw it out to Vinny.
At a marina i worked at, my boss was just about the most anal person i have ever known. He decided that Amsoil was the ONLY oil to run in the marina equipment. So he switched everything (and i mean EVERYTHING our one forklift was 40 years old) over to it. Never had a problem. Overkill? Definatley. But I am curious, could that car engine failure have been a coincidence?
I switched my wifes van to Amsoil a couple of years ago, and saw a difference in power and noise reduction right away (weird eh?). So, we changed the rear end and the tranny to. This is an Astro van and i can tell you it made a huge differance in how this thing runs - my wife even noticed (that's says a lot right there)
Best thing (not that i advocate this) at -30 it fires right up - no block heater required.
This is just my opinion, but to me the synthetics are worth the extra expense. i figured it out and over the life of the oil change, i save the same amount in fuel (in increased mileage) as i would running conventional oil so to me it's a wash.
Now that i've bored everyone to tears, Kurt, if you want, get me your engine serial number and i'll run it through Mercnet and give you the history on it (recalls, warranty claims (if any) etc).