Re: Ugly oil leaking from prop
Agree, those drain and vent gaskets are the number 1 spot for water intrusion. Fill it with full synthetic lu oil, change those gaskets, and run it for a bit before checking it again. The water will sit at the bottom of the lower unit, so just need to empty a bit to determine if you have a breach. If it is still leaking, you will need to do a pressure/vaccuum test.
To pressure/vacuum test a lower unit:
a) drain the gear oil
b) use an appropriate adapter with a gauge tee'd in to apply pressure or vacuum. No more than 15 psig for pressure. You can use a bicycle pump or any other compressed air source for pressure. For vacuum, you need a vacuum pump.
c) LU should retain some pressure or vacuum for 45 minutes minimum.
d) If pressure doesn't hold, submerge LU in water to find leak source [possibilities: drive shaft seal, prop shaft seal(s) (usually two), shift shaft seal and the fill/drain screw washers.]
e) replace offending seal(s) as required.