Re: shifter out of sync
The shift function on most Mercs is a cam which is rotated to select the desired gear. Putting the LU in N as MM suggested is easily done with a pair of vise-grips or pliers rotating the shift shaft to N. Do not force it. It is a cam but the cam is a detent not raised as in a 4 cycle auto engine. The cam follower will cause slight resistance between the detents for FNR.
I like N also as it has the least slop in the remote shifter and makes for a more accurate positioning. Problem with using N however is that you can't use the prop, which is convenient, to align the drive shaft splines to the powerhead upon installing. It requires you to turn the crankshaft which usually requires 2 people. But for me that's no biggie.
Mark