Hey guys, I'm having the same problem getting my LU back into place on my 1983 70HP Merc 3 cylinder. (BTW - I have physical limitations and can't do this job by myself.)
There was no remote control connected to the engine when the LU was removed. The indicator on the engine shows that it is in neutral.
The lower unit is in neutral as well. I can spin the prop shaft easily by hand in either direction.
I've read this thread and just can't seem to get things lined up. My 17 y.o. stepson is helping by pushing up on the LU while I steady the engine and slowly rotate the flywheel in an effort to get the crankshaft and driveshaft aligned. Still no joy.
I watched this video and learned how to shift the LU from F-N-R but didn't get anywhere with that.
As of now, the engine is just on the stand with a ratchet strap to hold the LU in place. Any other tips or tricks to get the thing lined up?