Re: Replacing blown OMC outdrive with other brand outdrive?
If you heard squealing, and then lost rpm, there's a good chance it's failed bearings. I had water in the upper of my '84, the input bearings welded together, stalled the engine. I found out after, the housing had a crack between the gearcase and water passage. (I neglected to check the oil for several years, Duh! A seal failed, let some water in, then froze.)
I had a good used upper case, got all the upper bearings and seals through a "connection" at a bearing supply house for $85, paid a marine tech $250 to change it and all was well again. After that, I meticulously checked the gear oil every fall.
A couple of years ago I replaced the outdrive, mid drive and trim parts with late model Merc Alpha. It's not all that much trouble if you plan ahead. Here's some pics and write-up;
http://forums.iboats.com/showthread.php?t=225270
I sold my OMC parts (Leg, mid drive, trim pump & cylinders, steering, all were in good working order) for $2500, got a 1 yr old Merc outdrive for $1100, all the other bits for $900, Seacast was ~$300 so not counting my labor, I sort of broke even. I kept my 5.7 engine
I strongly recommend that you take out one of the lower stainless screws from the boot, push a small slot screwdriver in the hole at 45?, and see how far you can push it in. If it goes more than ?", the transom is rotten, like mine was.