Soooooo I finally got my replacement motor for my 78 Glastron SSV 177. My knowledge on boats is getting pretty damn good but one thing that really remains a mystery to me and I'm not sure if its lack of motivation to learn or they just seem more complicated than they really are, are OUTDRIVES. I was getting my existing motor ready to be pulled and obviously one of those things is removing the outdrive. Everything went really smooth but when I seperated it from the motor a ton of milky gear fluid was around the drive shaft ( idk if that's the technical term or not ) and came oozing out of the housing (not sure if that's the right term either). When I changed the gear fluid a few weeks back it was pretty milky and smelled pretty bad but what threw me for a loop was the amount of water that came out that was not mixed with oil. It came out as clear water right out of the drain plug. It obviously needs some work and some new seals but is this gonna cost me a fortune? How serious is this? Should I do it myself or pay a shop? I'm pretty mechanically inclined but don't really know what I'm doing on an outdrive. I got a complete running Mercruiser inline 6 165hp motor (without the outdrive) for $675 which I think I scored on but I don't make a whole lot and I'm trying to keep the cost down. Any input or advice would be greatly appreciated. Thanks!
Hard to tell but there is fluid all down the middle.
The fluid on the bottom half wasn't there when I pulled it out. It made its way from the top on down to what looks like the exhaust or water inlet.
Here's a shot of the replacement motor.
Here is the boat
Hard to tell but there is fluid all down the middle.

The fluid on the bottom half wasn't there when I pulled it out. It made its way from the top on down to what looks like the exhaust or water inlet.

Here's a shot of the replacement motor.

Here is the boat
