Re: 1967 inline six shift rod not in LU
OK, first thing is to get the shift shaft out of the upper part, you may have to heat it up to get it loose. Spray some PB Blaster on it to help bust the rust.
Once you've got the lower shaft free, clean up the rusty splines of both the upper shift rod and the lower shift shaft, such that they fit together without binding.
Now we'll have to attack the lower unit issue. First thing to do is drain the lower unit, then flush it with a non-agressive solvent such as kerosene or WD-40. You'll see why you need to get the gear oil cleaned out later in this discussion!
The shift shaft is held into the shift bushing via a snap ring or circlip. You'll see a groove in the shift shaft where this snap ring used to be. The shaft just pulled right out around the snap ring and it's somewhere inside the front part of the gearcase. You've got to take out the bushing to be able to properly install the shift shaft.
You'll need to grind a special tool with (2) ears, matching the slots in the shift shaft bushing/seal assy, so you can unscrew it. A socket or piece of thickwall pipe with the same diameter will work.
Once you have the tool made, you should be able to unscrew the shift shaft bushing/seal assy. It's normal right-hand threads. You may need some heat to help free it up. I got a MAPP gas torch kit from Lowe's which has a much hotter flame than a regular propane torch and works well on outboards.
Once you get the bushing assy out, you can see the small hole in the lower part of the front gearcase, where the shift shaft is guided thru. This is also where the shift cam would normally reside.
However, with the shift shaft pulled up and away, spring pressure of the 'dog clutch' will push the shift cam out of position. This is why you can't get the shift shaft back in and make it shift.
Now, here's the secret to doing this without dismantling the gearcase:
You mentioned how the propshaft would 'click' in one direction and move the driveshaft when rotated the other way.
If you turn the propshaft in the direction that causes the click, and stop just before the next 'click', most if not all of the spring pressure is relieved from the shift cam. Then, it's possible to get the cam back into a position such that you can properly reinsert the shift shaft.
Now here's the reason for flushing out the gear oil: all that thick 90 weight makes it hard to see the shift cam, and also keeps the cam from moving about freely.
Before you try to insert the shift shaft, it's a good time to see if you can find the remnants of the old snap ring/clip. If not, Oh, Well, it's not the end of the world. But I'd recommend you get a magnetic drain plug because there's going to be a few metal bits floating around when the clip gets ground up !!!
Anyway, find a replacement snap ring and place on the shift shaft. BTW, check the sealing area of the shift shaft and if it's bad, get a replacement. The new ones are of stainless steel and last much longer than the old mild steel shafts.
With the propshaft in the "just before click" position, shine a strong light down the shift shaft cavity and "jostle" the lower unit to and fro. You should be able to see the shift cam move around and hopefully you'll be able to bump the lower unit such that the splined hole in the shift cam aligns up with the shift shaft guide hole.
Without moving either propshaft or driveshaft, insert the shift shaft into the cam. It should engage the cam, and you should feel them moving in unison.
You can confirm success by moving the propshaft until it clicks, then you should feel resistance on the shift shaft when turned. Whatever you do, don't pull up on the shift shaft !!
Install a new shift shaft bushing, which comes with new seal and O-ring; or renew the soft goods on your old bushing assy. Put a bit of assembly lube, gear oil or marine grease on the shift shaft and seal. Also spread some grease (or a thin coating of Permatex #3 gasket dressing) on the bushing threads/O-ring (this keeps salt out of the bushing so it doesn't freeze in place).
Tighten the bushing down and reposition the shift shaft by rotating CCW until you feel resistance. Any further movement CCW should result in shifting to Neutral.
If you like you can place the lower unit and control box in Neutral; this may make it easier for you to install the lower unit.
Be sure to rotate the flywheel a bit to engage the driveshaft as you're installing the lower unit.
HTH; if I left anything out feel free to post again; and let us know how it turns out............ed