Re: Lower Unit Leak
I also have a 1976 20 hp Merc, and have torn down a couple of these lower units. You need to drop the lower unit first, then you can get to the water pump. Impeller is about $15, OEM. Get the manual before you go too far. You will need to find the hidden bolt under the anode plate, which is held on by an allen head bolt accessed through a hole above the silver anode plate. There is one nut above the prop, and another on the leading edge above the lower unit. Three nuts, not four bolts as stated above.
I made a tool to remove the cover nut--the ring with four notches. I did it by finding an iron plumbing fitting (a bell coupling worked just right, take measurements and go to the hardware store) that would fit inside the cover nut. Then I drilled four holes around the perimeter of the plumbing fitting and put in four bolts so that the bolt heads would engage the notches in the cover nut. I did a little fine tuning on the bolt heads with a dremmel tool so they fit well. You can add spacers and washers then a nut on the prop shaft to hold it all in place, and turn it with a large pipe wrench. Use lots of penetrating oil and heat with a propane torch if it is stuck.
You can also buy the tool from oldmercs.com.
The book says to pull the bearing carrier to replace the seals, but I have also read of people removing these seals by drilling the metal flange of the seal and threading in a screw to pull the seal. Haven't tried that myself but it is interesting. You wouldn't have to remove the cover nut if you did it that way.
You should also inspect the shaft for pitting or grooves that will damage the new seal.