Re: 1961 Johnson seahorse 40hp lower end question #2
As Joe Reeves said, the earlier thread was just getting going. Several folks pointed out that it was likely a spun prop hub. It's always better to start with the simplest and cheapest possibility before starting to tear things apart.
We had just started asking you questions, so we could narrow down the possiblities on the "drain plug" you removed and where stuff was leaking. Now, if you do it just right, you'll be able to get the gearcase reassembled without it leaking. You'll need a new spaghetti seal and the proper sealant to prevent the gearcase from leaking.
I assume you have some sort of manual for this engine. Even the Seloc manual will walk you through resealing the gearcase cover.
This site is wonderful, and will almost always get to the problem and help you with a solution, but, if you take off on your own before the problem is really identified, you're likely to get in trouble.
Props for this engine are common as dirt, since they were used for years and years. eBay has lots of them, and a brand new one is less than $90 right here on iboats. Every part in the gearcase, other than the seals, will cost more than that.