Re: 1985 35hp mercury lower unit wont drop.
What is you engine s/n? If you are sure it is a 1985, here is the parts list:
35 H.P. - Mercury, Mercruiser, Force, etc. Parts Lookup
What you are showing in picture 2of2 is actually the top end of the upper shift shaft, seen as item 19 under SHIFT CONTROL LINKAGE. The lower end of that shaft has a splined coupler that fits the lower shift shaft, seen as item 43 under GEAR HOUSING (DRIVE SHAFT).
When you have all of the bolts undone and the LU is ready to drop, there is nothing you have to do with the shift system as the upper and lower shift shafts will slide apart on their splines.
Here is a link to the condensed version of the Clymer manual which will show you everything that has to be undone. Download it soonest to your computer as the link is short lived.
Small Engine Repair Reference Center Home: MERCURY - TWO-CYLINDER MODELS.
If you have everything disconnected, it is probable that you have some corrosion in the shift shafts mating splines or the splines at the top of the driveshaft where it enters the crankshaft. Get some wooden wedges on each side in the gap you have and start tapping the wedges in to see if it will break the corrosion. Be prepared for the LU to drop quickly if you are not holding it. With any luck, it should come with a few good hits but if it is severe, you may have your work cut out for you.
Let us know how you get on and Good Luck!
Gerry
