Re: bellows replacement
The bellows can be replaced without removing the engine, but since the outdrive will have to be removed before you can remove the engine, and you do have to remove the outdrive to do the bellows, it would be a good time.
Also before things come apart, check the play in the upper gimbal ring pin. The SS pin has a big square head that fits into the aluminum gimbal ring. The pin is held in place with a u-bolt that clamps the top of the gimbal ring around the pin. The other end of the pin goes through the transom housing and has the steering arm attached to it. Over time the u-bolt stretches and allows the pin to woble around and enlarge the hole in the top of the ring. Then you get a lot of play in your steering. Fixing this is very easy if the engine is out. The parts bill is painful, but the the labor savings over having the job done with the engine in place is huge.