Volvo Outdrive - Water leaks in, Oil leaks out!

Hello All....Here we go again! And she was running so good! Checked the fluid in my outdrive (Volvo Penta 290 single prop). About a cup of water came out, and the oil was milky. Changed the oil. Took it out, did good. Back at home, checked the fluid again, milky again, about a cup and a half of water came out, topped it off with fresh oil. Took it out again yesterday, and after running great for a couple of hours, I had problems getting it in reverse and neutral, came back in, put the boat back on the trailer. Once back, she seemed to go in reverse/neutral ok, but I noticed the milky oil all over the driveshaft boot and hoses in the upper portion of the outdrive. Checked the lower unit dipstick, and it was WAY low - none showing on the dipstick. Obviously it is leaking in this uper area somewhere, but where? Why would the outdrive oil be leaking that high up? Any thoughts before I pull the outdrive? Again, thanks for any advice!

Re: Volvo Outdrive - Water leaks in, Oil leaks out!

Anyone have any input?

Re: Volvo Outdrive - Water leaks in, Oil leaks out!

The 290 has a series of o rings the seal the upper,intermedate and lower drives together as well as the o rings on the oil check stixs and drain plug.Have they been changed recently? That high up you could be looking at the seal on the intermedate.If you dont have a manual you can get a diagram of your drive to beter understand on marinemacanic.com click on the volvo icon.If you do pull it apart spend the extra 50.00 and change the ujoints. good luck

Re: Volvo Outdrive - Water leaks in, Oil leaks out!

Thanks Fish.......That gives me a place to start. I've worked on outboards, but this is the first sterndrive I've had to deal with. Guess I'll have to take the outdrive off to tell exactly what I'm dealing with. Hope I don't run into too many left over parts if you know what I mean!