Well, I found this video and it appears that I probably have the correct exhaust passage seals and they're installed correctly.
I'm not doing anything different than this guy did.
Forward the video to 19:20 into it. https://www.youtube.com/watch?v=v_wg6L81QXw
There's also this guy in this video at the 12:30 mark putting his lower unit back up and in. https://www.youtube.com/watch?v=7TRQkHd465E
He appears to struggle a little at the same area I do at 12:40 into the video (after he remembers to put the exhaust passage in. But then he snugs it up with the bolts. Maybe I just need to do that.....but I worry about breaking the aluminum fins if there's too much resistance from the exhaust passage. Maybe I need to lube those seals with grease or dish soap first?
I put some dish soap on the seals for the exhaust housing thing and just bolted it up tight. I was afraid of cracking the aluminum due it being so stiff before. I think the dish soap made it just slippery enough to ease my mind on it going back together.
Haven't tried running it yet. Maybe later this week.
Where are you putting the vice grip? At the bottom, just above the lower unit and that rubber seal put onto the shift shaft? Or up at the top somewhere? I'm not quite picturing this in my mind.
I push the lower unit up into the midsection, the shift shaft will be through the front hole on the midsection, THEN I place the vicegrip on the shift shaft right above the hole in the midsection.
It also helps to hold the LU, from falling down all the way as I try to line up the water tube et al.