A few of you guys have been helping me out with suggestions around getting my lower unit back together so thanks to all for the suggestions!<br /><br />Now in one of the last post about the carrier leaking oil A.D. mobile mentioned a high torque to seal the oring. So thinking about that I realize that the bearing carrier must still not be all the way in meaning no contact on the thrust washer and heance no pressure on the o-ring giving little to no seal.<br /><br />Sooo, not wanting to beat on it anymore with the fence post driver, and being unable to repair my distorted housing I decided to just go ahead and file the bearing carrier in the places I could see that it was dragging. After a little filing and a few temporary installs to gauge fit it finally went all the way with little resistance. So I tightened it up (beleive it or not I actually used a tool vs. hammer and screwdriver)<br />and took it out for a day of fishing. After 8 to 9 hours of run time it seems fine, no water in the oil and no signs of gear damage. <br /><br />Now in the mean time I bought the new lower unit off of Ebay thinking mine was toast. So in closing, anyone interested in a complete merc outdrive? Runs great, new seals and water pump with only minimal surface damage to the bearing carrier.... 
