Hello all, I recently purchased a 23' Chaparral with a 7.4 GSI PEFS engine and DP-S1 1.68 ratio drive, all 2000 model year. I've been working through the little bugs and now facing something scary. The drive gear lube is a milkshake with water intrusion. I pressure tested the unit and found a slow leak down, say around 8 psi drops to 5 over 5 minutes but wasn't able to locate the exact source. However, I also found a major leak at the bottom of the outer prop shaft seal when the prop shafts are pressed upward, see video. Oddly the propshafts have some radial play, especially in the up direction as can be seen by the leak that's created.
Any advice on next steps? I'm guessing this isn't normal, haha and have already ordered the tools to remove the retaining ring and pull the prop shafts and figure I'll at least do that and see if anything obvious jumps out. I have a lot of experience in automotive repair and also some marine work but more on v-drives boats. I'm a complete noob when it comes to VP sterndrives so any advice is appreciated. Thanks!View attachment 20231027_132209.mp4
Any advice on next steps? I'm guessing this isn't normal, haha and have already ordered the tools to remove the retaining ring and pull the prop shafts and figure I'll at least do that and see if anything obvious jumps out. I have a lot of experience in automotive repair and also some marine work but more on v-drives boats. I'm a complete noob when it comes to VP sterndrives so any advice is appreciated. Thanks!View attachment 20231027_132209.mp4