Not familiar with the Erudes and do not know the setting but sounds like 0.040 is excessive, typically it is much less than that, ex the old mercury’s use 0.008" – 0.012". Someone on this site should know the setting. You will need to open it up to use shims to set it. Not sure if there are shims at the top and bottom bearings. Look up your engine schematic with engine serial # on a parts site like

http://www.crowleymarine.com