I had my boat in Canada last week. I was running the boat and shifted into neutral. Went to shift back into gear and got nothing, not forward not reverse. No clanks, or bangs. I did not hit anything and the shifter felt the same as it always does. We got into shallow water and checked the prop. In neutral with the engine off it would free spin, when shifted into gear the prop would lock into gear. When the engine was running the prop would not spin. We removed the engine cover and was looking around at the cables when we found water coming in through a small hole about 3/16 diam. in the outdrive housing. It almost looked as if a bolt fell out. The hole did not appear to have threads in it. There was also cable to linkage on the side of the engine that operated a switch that has some loose conectors but I do not know what that switch does. It may be a neutral position switch. Is there any ideas out there about the shifting and the water? Is the hole a vent into the boat from the lower unit? What does the switch do? I am in the process of getting the shop manuals to try to troubleshoot this. Any help would be apprecieated.