My friends 1989 Baretta with OMC Cobra outdrive and 2.3L engine started "clunking" in and out of gear the other day. It ran fine for a couple of hours prior to this beginning. I pulled the drain plug and find water is in the lower unit gear oil.<br /><br />My questions are:<br />1 Will the water in the oil alone make this happen?<br />2 Is this a shift linkage adjustment problem?<br />3 What damage may he have done in the time that this ocurred and the short distance he had to limp it back to the landing?<br /><br />Thanks for you help in advance.