I know it can't be good, but what I mean is , is it really bad? I had my impeller changed about 2 1/2 months ago the the mechanic had trouble getting the lower unit off. He made a small nick (maybe with a screw driver?) right where the lower unit meets the......upper unit? Any way, I ran the motor today on the hose and there was a small amount of water squirting out right where that nick is. I've had the boat out 2 or 3 times before today and hadn't noticed any problems. By the way, it's a Merc 125 saltwater.