So, I changed the impeller, gaskets, wear plate etc. and had a bit of a struggle getting the leg back into position when refitting. It wouldn't go fully up into the upper section. I figured the splines on the drive shaft weren't properly aligned and so, rotated it a tiny bit, then again and finally the leg went up into position. FWIW, I selected forward gear before dismantling, even though I was only removing the lower leg. Anyway, now the prop clicks when turned clockwise and it refuses to turn counter clockwise at all. This is the same scenario regardless of whether forward, neutral or reverse is selected.
Having said that, since I bought the boat, I've always found the gear selection very stiff. Perhaps it has never actually been selecting gears. There is some movement at the selector linkage above the engine, but maybe not enough. I think it's time to disconnect the gear linkage and see how the shifter works then and take it from there. Anything I should be aware of or watch out for? Thanks for the input to date.