3.0 mercuriser wont go into gear

erictibbs1980

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Joined
Aug 6, 2011
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HELP!!!!! I bought my first boat about 2 months ago 1989 renken cuddy, with a mercruiser 3.0 I/O, and my wife is about to kill me. Before I purchesed the boat I took it to it "marine mechanic" that charged me $90 an hour for 3 hours to do a pre buy inspection on the boat. Other then the carb needing to be cleaned he gave the boat a clean bill of health. So after I paid this guy $520 to re build the carb, and $270 just to look at it I tried to take it out and it wouldnt start. So I checked the spark and when I pulled the plugs out and turned the key water came shoting out of the plug holes (2 & 4) so I took it back to the same shop and this time it was the exhaust manifold and the elbow, $1300.
So after all this I got it back and out on the water, it seemed to be running fine. We ran up and down the river for about an hour then anchor off out in the lake for an hour or so. When we were finaly ready to leave I started the boat up and tried to go into gear but it wouldnt shift, there is a clinking sound and when I put it into gear it either stalls or revs up, but does not shift. I drained the oil in the lower unit, there was only about a quart (no idea how much should be there) and it was milky (water) and had metal shavings in it, I know this is not good, but can not afford to take it back to have it fixed. Can anyone help me trouble shoot this, any idea of cost, and can I do this myself. I have never worked on boats, But do have some experience working on my own cars.
 
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