Re: 73 Merc 1150 2 stroke 6cyl Distributor
I recommend you replace the waterpump base, since you have water leaking into the gearcase, and the driveshaft seal is a prime suspect. Sand all the corrosion off the driveshaft, and oil it up before installing the new waterpump base, oring and gasket. Inspect the waterpump cover for wear on the SS insert. If it is worn down or scored, replace it as well. Always use a new impeller, wearplate and gaskets. Use gaskets on the gearcase plugs.
If the gearcase still has water entering it, you likely have a bad propshaft seal.