I ran the boat this past weekend. Noticed oil in the bilge, checked oil level and it was full. Came home and checked engine cooler lines and all connections. Not engine oil. I had the prop shaft seal replaced a couple of weeks ago and was told to run the boat and change the drive oil after running it to make sure all the water was out of the drive. I pulled the plugs on the drive and it was full of seawater. I drained all the water out and refilled the drive with oil and started the engine and put it in reverse and forward and ran it a few minutes to put oil back on the internals. I couldn't hear any bearing noise. I then drained the drive again and pulled the drive off. The seal around the driveshaft is bad and the spring on the seal was in the bellows. I will be taking the drive apart and inspecting bearings. I have ordered upper and lower gasket and seal kits from Doug Russell Marine. We have a Motion Industries bearing warehouse in Pensacola and they can get me anything I need for a LOT less than Doug Russell or our local OMC dealer.
How did the oil get into my bilge? The bellows is not damaged and not leaking when in the water, but some water was coming in with the oil when the engine was running. I do use the lower unit water pump, so do I have a internal leak as well? I guess water may have gotten to my gimble bearing and u-joints as well...damn...