Re: water in the boat
Let me ask you a question: do you boat in salt water or fresh water? If fresh water, then you can get away with only changing the bellows, although I would strongly recommend going ahead and changing the u-joints and gimbal bearing. If salt water, you should DEFINITELY change the u-joints and gimbal bearing.
I did run mine with ripped bellows for a while, but only until I realized what the problem was, as the boat was new to me. Check to see if the bellows are ripped before proceeding, as it may or may not be the issue, but most likely is.
The job itself is not all that difficult for a first timer, just some things that are hard to get. It will only take a weekend of hard work (when I say hard, I mean the removal and reinstallation of outdrive, and old gimbal bearing removal). If you do want to proceed with this, look for a guy on eBay named James Hall, he also has a store on there called Jim's Marine(?). Anyways, his prices are very low, fast shipping, and very easy to work with. He has a kit he will sell that contains all the gaskets and o-rings you need to replace, as well as the u-joints, and you can get the bellows as well, probably all this for under $150. You will also need an alignment tool, which can be $50 w/ shipping.
One last thing I have to recommend, instead of replacing the exhaust bellows with another set of bellows, get the exhaust tube. Installation is a million times easier, and it gives the engine a nice little growl, but audibly it is hardly noticeable.