3 liter mercruiser no power

[Jjpumala]

Hi guys thanks in advance for your help. I recently picked up a 1986 searay seville with a 3 liter mercruiser in it. Engine starts and runs fine but when u accelerate the engine revs like its driving but the prop isnt spinning. When the motor is off the propshaft will spin by hand freely in either direction while in forward or reverse. I did take the cap off the upperhousing and put a pipe wrench on the driveshaft and when i turned the driveshaft it did move the gears at the top of the upperhousing but the propshaft didnt. Any ideas where the disconnect is

 

[Grub54891]

Sounds like the lower shift cable is shot, or needs adjustment. Or, is the neutral button on the shifter stuck?

 

[thumpar]

Have someone shift it while you look up in the drive on the front where the shift shoe is. That should turn as it is shifted. If that is turning then it could be a broken vertical shaft.