Okay... I'm stumped. My 1978 Caravelle w/a mercruiser 165 IL6 is taking on water and has milky lower unit oil. Sounds immediately like u-joint bellows...... well its not. I took the l/u off last weekend and the u joint bellows is in great condition... which it should be because i changed it 2 years ago. The exhaust bellows has a hole in it but that should have nothing to do with my problem... right? Are there some seals in the lower footing that need to be replaced??? Even if that were the case water shouldn't be getting past that gimbal bearing. Last week when I took the l/u off I repaced the gaskets and o-rings that go around the water pump, outdrive, etc. Now to put icing on the cake i'm having shifting problems....i'm grinding gears in forward and reverse... i'm starting to wonder if it could somehow ALL be related... maybe shift cable bellows???? I would LOVE some help! Thanks
