Re: What seals the lower unit to the rest of the motor?
There is no seal. Exhaust and warm water from the powerhead go down the inside of the midsection all the time. The lower unit itself has seals that keep oil in and water out. They are usually located just beneath the water pump on the drive shaft, and on the prop shaft right behind the prop, as well as on the shift shaft. Drive shafts and such are stainless steel in most cases now to prevent corrosion. That's why there are usually a couple of tiny holes just beneath where the lower unit joins the midsection-----so water can drain out of the midsection and not freeze inside there, breaking stuff.
Later,
JBJ