Re: outdrive trailering
Try standing on the drive and see if it goes down all the way.... (If it does, that could indicate corroded end caps in the trim rams.)
If the 'trailer' button works, and the UP button doesn't, then it's most likely the trim limit switch (mounted on the port side hinge pin of the gimbal ring) or the associated wiring.
The exhaust on those engines was a tube, not a bellows, so water coming out of there could be right....
Chris......