Thank you for all your input, obviously I am new to the boat repair. I tried banging the bearing out with a 5lb slide and axle bearing attachment. Looks like I need to find a 20lb slide. This boat has always been a good runner and never had any problems with it. I had it in storage parked with the transom down hill and unfortunately had the plug in. It collected a lot of rain water after a storm and filled the bilge at least to the oil pan of the engine if not higher. That's when my problem started. I'm thinking water got into the gimbal bearing from the inside the boat if that is possible, not from bad bellows. I took the boat out and noticed the growl of the gimbal and greased it from the zerk on or near the bell housing? Instead of a squirt or two, I pretty much finished the tube of grease, so maybe that excess grease is what I am seeing and not drive oil? The O-rings I speak of are the ones on the drive shaft that go through the gimbal. Maybe water got in through the back of the boat mixed with excessive grease and gives the resemblance of gear oil, I don't know. Anyway, I tried to make arrangements for the marine center to take a look at if for me, but they wanted +/- $600 for a service and then add additional repairs, unfortunately, I don't have the extra $$$ laying around for that. When I pulled the boat out of storage a few weeks ago to start working on it, is when I noticed the drive oil reservoir drained into the bilge, I changed the oil out of the drive unit and topped off the reservoir, when I went to work on it again this past weekend, my reservoir was empty and it had drained into the bilge again. So, how hard is and or, how do I go about repairing that. I have already replaced the impeller and the circulating pump. 1996 Bayliner 2050 Runabout. Thanks again. Also, when I drained my outdrive, the oil looked great, almost new with no water or milky appearance.