Sorry about that first one, I am not sure what happened there.
In retro-spect this post should have been labeled "shift cable bellows water leak".
I believe I could have seen the water coming in if I would have looked in the right place, looking down the transom just to the drivers side of the drive shaft where the cable comes into the boat.
When I removed the cable to change the bellows I broke the cable at the bell housing where the bolt/nut attaches to the cable shield. I think it was already damaged.
Note to self, be sure the cable spins with the cable mounting bolt when loosening and tightening the shift cable.
I made a special tool from a 9/16 short socket, cut the side out (crows foot) to fit over the cable and welded a 3/8 x 1/2 x 5" bar on the side and top opposite the cut out.
This worked well, I could use a small 1/2" wrench and turn the nut about 1/2 a turn, I used some smooth pliers to hold the cable from recoiling when I took another bite on the nut. I could set the wrench against the bell housing to hold it while I got in the boat and spun the cable to relieve the reverse tension on the cable.
A helper on this project is a much, much better idea.
This cable makes a pretty sharp bend just after it gets past the transom plate and under the exhaust separator. I had to make sure the cable nut was pulled tight against the bell housing and that the bellows wouldn't push the nut away to get it started.
I installed the bellows and outdrive before I hooked up the cable in the boat, the replacement cable was an almost exact match so I just made sure the shifter and prop was in full forward, adjusted the cable end mounts and parts so they fit were they where when I took it off, checked the shift cut out switch and all is good.
Ran it on the lake for a few hours on Sunday, no water in the boat and it shifted fwd and backward just fine.
As for the orange sherbert in the ujoint belows, I am hoping the water leaked in from the damaged shift cable and bellows, the poor condition of the bell housing gasket or the missing seal washer from the lower drain plug. I will see later this year when I pull the drive again.
Shift cable 64.00, cable bellows kit 25.00, outdrive gaskets,lube,grease, new grease gun, misc 65.00,
Having a great day on the lake with the family, priceless.
The boats not for sale anymore, Roy.