Re: Gen II Drive Oil
mozbornj;as jason stated no. oil can leak out and not get water in. i cracked the upper case on a alpha 1 and lost the oil down to the bottom of the crack but no water entered.
in all the ones i broke even when i lost all the oil a few drips and a oil film was present. if they did put oil in the drive you should have a trace of oil in the lower unit. when out of the water would still drip oil and oil film from leak
i have heard ,here maybe, sei has a 3 year no fault warrenty. you should get a hold of them and see if your new lower is covered. if the teeth ground off the top gears and ran with out oil i see no way your lower cant have been damaged or at best filled with metal.
a no fault warrenty would cover no oil but maybe you have to buy both upper and lower? at this point get a hold of them,sei, and find out where you stand on your lower and buy a sei upper to go with it. if your lucky you might get your lower fixed for the cost of shipping and start over with a new upper and repaired lower.
as to your problems with you shop i have no idea what you could work out