Good Morning Team!
final update on the transmission. This summer I ran the boat on the trailer in my yard...the propeller was spinning exceedingly fast in neutral...never changed perceptible speed when shifting back and forth from Forward to Neutral.
To get it to shift into reverse I'd have to push the throttle (single arm shifter/throttle) into the reverse detent and raise the RPM's until about 800rpm before the rapidly spinning prop would slow down and then reverse direction.
Way to screwed up for ramp "ops".
I took it to a mechanic in Page, Az who found the second set of new clutch plates warped into forward and he pulled the transmission and replaced/rebuilt the Velvet drive. (To the tune of $3,200) He ran into a low pressure issue in neutral. It would have good pressure in neutral after a restart of the engine but would lose pressure shortly thereafter.
He said he rebuilt the control valve and problem went away. specifically he didn't mention any replacement parts for it as I recall.. I now have a functional transmission.!!! woo hooo!!!
I paid the first mechanic $4000 to fix the transmission... they broke and replaced the trim pump for free, ran the boat without water and killed the impeller/housing and cracked the intake manifold (possibly or it cracked by itself), replaced the transmission oil cooler, replaced the new transmission hoses twice (they mis-measured length the first time), replaced the oil cooler (said it blew up on them and sprayed oil everywhere but there's not a drop of residue anywhere onboard), backed the boat into their boatyard fence, "fixed" the trailer brakes but left the reservoir cap loose; it filled up with water/gunk) replaced the trailer hitch head unit, over tightened the drum brakes or did not install the head unit properly as my first trip to the new mechanic I had overheating brake drum hubs... I stopped every 40 miles and waited an hour for them to cool down; but this brake drum thing will be another thread

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I brought my new/used boat to these guys and asked to replace all the rubber. They skipped the transmission oil cooler line which collapsed when applying throttle the first day I ran the boat and now here I am $10,000.00 (total) dollars later.
Avoid Marine Maintenance in Flagstaff, AZ at all costs.
Try B&T Marine in Page,AZ instead!!!!