I have removed the dribbler valve from the bell housing and will be plugging that hole. I have taken a bell housing gasket and flipped it to where the hole where the dribbler valve was will now be covered. So the hole will be water tight. No water should leak back through the transom because the hose is connected on the inside and the reservoir is higher than the water level.
So if the drive has the correct oil level, pressure build up shouldn’t be an issue.
I’m just trying to figure out if everything will operate correctly without the reservoir.
will be no issue, some of the Gen 2s did not have the revesior.
when I had my gen 1 years ago I would frequently check the level (upper vent) and the drain (bottom) for evidence of moisture. Just a couple times a season.
Biggest issue you can run into with this set up is the drive input shaft seal leaks oil that fills the bellows , which you wont see until the bellows fill and its spills into the bilge. By then you may lose the upper gearset and bearings.
there is absolutely nothing wrong with doing it this way, you just dont have the level of protection the reservoir gives you and no alarm for low level. Likely you will need to disconnect the level sensor on the bottle as if empty the alarm should go off.