Is water supposed to come out the hole in this pic? I just rebuilt the water pump and It appears to be flowing out there pretty good on muffs. I also think there might be a slight trace of oil in the water but it might be just washing out of somewhere.
Water comes out of that hole on mine. It is not a leak. Put it this way, it is an open hole, the entire outdrive goes underwater anyways, so it is bound to get water in there.