I have a '95 5.7 with the Alpha 1 Gen 2 outdrive. The oil in the reservoir is down about 3\8 " from the full mark. I have a cover on the ourdrive and there is no oil on the cover. I have looked in the Clymer shop manual and the old mention and picture is the wiring to it and the second temp. sender. I had the boat out today and noticed the drop. I let a little oil drain out of the bottom plug to see the color. Not milky or any sign of water. I saved it and will let it sit and check tomorrow. My question, where does the tube from the resevoir enter the lower unit and where is this oil going? At the begining of the season the level was just a tad down after I had changed the oil and used it for the first time. Thanks for any ideas.