Omc outdrive revs then jumps into gear

[d_carter]

I have a 86 omc stringer 800 mechanical shift 4.3 engine. The shifter would not move freely and it would rev up and then pop into gear. You had to pull the handle back past neutral into reverse to find neutral. I disconnected the cables from the outdrive at the converter housing and the handle moved free. I then discovered water in the lower unit. I completely disassembled both cases and discovered the waterpump shaft splines worn and also mating driveshaft splines shot. The gears and shift coller are fine and I have not found anything else wrong except the shift cables are seperated from the end of the case where they go into the shifter plate in the lower drive. I had a small leak there last year and it always was clean lube. I only used it once this year and when i tilted the drive up out came chocolate milk looking crap. I have new seal kits and new waterpump kit and am ordering new shafts for the uper case. Can water get into the lower unit from those cables or am I overlooking something?