Leaking Fluids

I have a 1957 18hp Johnson Sea Horse. I Changed the lower unit grease on it and used just the standard 80w-90 fluid you get at the marina. The problem is I ran the motor and now there's a white foam, which I believe is oil mixed with water seeping out a small whole on the very top of the lower unit. Right where it bolts on. I pulled the drain plug on the lower unit and the grease looks fine. What's the white foam coming out? Did I use the wrong fluid? Because it says on the side to use Hypoid oil. Could this be causing it to foam?
Thanks

Re: Leaking Fluids

i would do a decarb on the motor, it could be old residue in the exhaust housing.

Decarb, take a can of seafoam put 3/4 of it in the gas tank, with only 1 gallon of premixed gas. put the rest in a spray bottle. start the engine, and let it come up to temperature. then remove plugs, and them some real good shot of seafoam into the cylinders, replace plugs, let sit 15 minutes. restart, and spray the rest of the seafoam into the carbs, so the the motor almost stalls, wait and repeat until the seafoam is gone.then take for a wide open spin. then put in new plugs, ad premixed gas to the tank, and take it for a wide open throttle spin. it is going to smoke like a house on fire, during this process.

afterwards compression.recheck

Re: Leaking Fluids

That's just exhaust gunk...it's draining where it's supposed to drain. Like TD said, try a decarb with Sea Foam. What fuel/oil mix ratio are you running...I think the standard with TCW-3 oil for the late 50's OMC twins these days is 24:1 or 32:1...running richer mix and lots of trolling/slow speed operation aggravates the gunk condition.