I found a place on ebay that has a new 2bbl UNPAINTED inside and out for under$96 Can pm the item number if your interested, I purchased 2 so far and work perfectly
loosen the nut and raise and lower the drive again If no more noise remove and lubricate the bushing and retighten
If it still make a crunching noise then suspect a rusting u joint
For anyone else with these issues I an redeveloping the drive res system that
that merc offered and is no longer available Uses a different fitting, a trim pump hose and the same res container.
It was running with low/no gear oil. shift into fwd, remove the drive and I suspect you will find the oil that was lost .You should have also seen gear oil in the bilge area.This is why deive removal is suggested at end of season to inspect for gear oil or water in the bellow. I remove mine...