Re: War with lower unit
I went thru the lower unit rebuild a few years ago when I had to replace a badly corroded driveshaft. I ended up replacing bearings, shift cam, clutch dog and reverse gear as well. I'm going by memory and that's not my strong point but I'll put this out there for discussion sake.
Since your driveshaft has the spring loaded "preload" pin, you can assume that the upper bearing in the lower unit is a tappered roller bearing. As such, without any preload on the driveshaft (from the preload pin), there will be axial play in the driveshaft. Once the lower unit is installed onto the motor, the preload pin pushes down on the driveshaft forcing the tappered bearing to seat properly. The method for measuring backlash differs depending on the type of upper bearing and driveshaft used.
There were a number of different combinations of bearing types and gear "cuts" used in the early lower units. There were left-handed bevel, right-handed bevel, and straight cut gears. Tappered roller bearings were replaced with ball bearing type upper bearings. When the ball type bearing was used, there would NOT be a preload pin on the driveshaft. Preloading would then be determined by shims under the lower waterpump housing.