It seems that you did not disconnect the shift linkage.You'll need to reinstall a couple of the bolts that retain the lower unit and draw it back up in place.This will remove the bind on the connected shift linkage.The shift rod connection is below and just under the lower carburetor area.
It's not the cable that needs disconnecting.There is a steel shift rod that extends straight up from the lower unit to a shift arm that is located under the lower carb area.There is a small pin/bolt that needs to be removed in order to remove the lower unit.It is either a 3/8" or 7/16" hex head pin/bolt.It's not very easy to access.Hopefully you haven't tried to force the unit down and bent any of the linkage components.This is why a manual is priceless ,particularly on your first waterpump replacement.
As I stated above,you'll need to make up a couple of the lower unit bolts and draw it back up in place before removing the shift rod bolt.
Hi Schrimsherr , OB gave the best advice on any repair done to an outboard, The repair manual is your best friend. You can use them for free at your local library so if cost is an issue this is the way to go , thats what i did. And if you have any problem you cant figure out , you come here.
welcome to the world of Iboats.If we tried to post the complete proceedure about your pump replacement I know I'd have to type for at least an hour.And if I typed something wrong,and it was posted,I'd feel bad.I'm not a great typist.
Read around a bit,I think you'll get to like it here.
Yes you need a manual,because I won't be at you door in the morning to do the job for you.
Even if you paid $100 for a manual, you will make up the difference after doing one repair............ I got mine on ebay for like $15
It is impossible to explain the importance of a manual, but it really will help you avoid situations like the one you are in now. It will give you an order to do things that will save you time and help you avoid breaking stuff. ( sometimes the order you remove the bolts makes a difference, and many have specific torque values)
I find it helpful to take pictures as I go along so that I can reference them if I have to.
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I must speak up about the manual, I have one of these valuable assests.
It says " 2. remove shift rod screw A" with a dark picture of a unknown area with an arrow pointing at a lighter colored spot. Not what I call descriptive at all. Yes you must have a manual. Will it walk you through step by step? No. That's why people come here for advice.
it doesn't tell you that you will have to remove the air box, possibly the carb and or starter just to reach it depending on tools you have available to you.
removing lower engine cover works too.
i agree with all of the above posts about the manual. i tried to do it without one my first time and quickly learned that things arent always as they seem... and the manual realy helped.