So, I just got a "Christmas present" from my marina who told me that I will need a new outdrive ($10K+ with labor costs). The outdrive is a dual prop SM model 1.95 gear ratio (just in case it matters). The outdrive was serviced 4 years ago. At the time the water was found in gear oil as a consequence of a bad seal around the main shaft. The problem was taken care of (a few grand to recondition the main shaft, replace seals, etc.) and the outdrive was working fine ever since. I checked the oil this spring before putting the boat in the water - oil was clean, no sign of water intrusion and correct oil level. This fall, after pulling the boat out of the water, I asked the marina (certified VP sevice center) to inspect the drive since it's been 4 years and I sensed some vibrations when turning. Now the tech at the marina is telling me that he found NO OIL in the outdrive (all water) and the outdrive will have to be replaced (again, I checked the oil in the outdrive just this spring). I am baffled, how can I loose all oil in the outdrive over such short period of time with no sign of problem. My only theory is the incident I had just a few weeks before pulling the boat out of the water. I hit something with a prop (felt a couple of jolts in rapid succession) that left about 3/16 inch "fold" along the leading edge of one of the props. Did not see any damage to the outdrive at the time, everything was functioning fine, so, I dismissed it as minor thinking that I'll have to spend a few hundred bucks on reconditioning the prop. Now I am thinking that this incident may have damaged the seal around the main shaft and caused the oil leak. However, I only made two trips (30miles each) after the incident, would that be enough to ruin the outdrive beyond repair? What does it take to restore the outdrive with worn bearings? I presume this is what's going one since the outdrive was functioning fine when I pulled the boat out of the water. Any advise/wisdom would be appreciated.