1964 Johnson 40hp Lower unit bearings

[eriklane]

How do you line up and keep the cylindrical bearings on the lower unit power shaft so I can get it back together?
Also, I cannot get the Lower unit to come totally up so I can bolt it all together. Is something inside the water pump sticking? I did take the key out of the shaft before I took the thing completely apart (I have the middle and lower units both apart. I have oil in my water pump area, where is the seal that is likely causing this?

Thanks, Erik

[Evinrude Boater]

There's a thrust washer on the prop end with two dog ears; one should face down into the notch in the case. There's also a snap ring that must fit into a groove in the case. Do you have the shift cradle and yoke fit together properly? There's a hole in the prop seal retainer that has to be aligned with a pin in the upper portion of the case.
You might have to turn the prop slightly when engaging the drive shaft with the power head.
There's a drive shaft seal just below the water pump. You could have oil coming up through there. There's a bearing at the bottom for the pinion gear and either a bearing or bushing below the seal that's below the water pump.