i have water leaking in and i filled the boat on the trailer today and it is coming out of the bottom of the out drive by the trim hoses not next to the hull
pull the connecting block down and replace the gasket.some models had a hole thru the housing for the Mercathode wires, sometimes the rubber plug is missed. http://www.boatfix.com/merc/Techbk/94/94hs7.pdf