Re: Was cruzing along fine and then....
It was not difficult getting it gutted but I have the standard group outdrive...the heavy duty ones (I think the more common ones) May be a little more involved from what I have read so far. The early heavy duty ones have a oil pump inside the lower unit which require the cammed prop shaft to be positioned just right to remove it. Also I think there are more shims. Mine was fairly simplie but caution must be exercised when removing the shift wires.
You have a good point about the rpms. I don't recall looking at my tach when shifting but I can definately feel it clunk into gear when put in foward. I was trying to baby everything else like building up speed slowly and not hammering the throttle...also avoiding WOT. When I get it all reassembled I will check my RPM's and adjust like you have it!
Here is a picture of the more typical heavy duty outdrive as compared to mine. Both were offered on my boat.
And here is the one I have