I recently purchased a 2003 3.5 HP Nissan 2 stroke. I tested it in a garbage can and observed no raw water discharge and figure the impeller was shot (i later verified the impeller was in pieces). However, there appears to be another problem. When I pulled the engine out of the test can I noticed some brown sludge looking substance pushing out from around the drive shaft grommet. I pulled the lower housing down to replace the impeller and notice quite a bit of this substance in the housing. Is there another problem? Outboards are new to me. I've replaced the impeller and wanted to address this other potential problem before putting everything back together. I really appreciate your feedback.