Okay. My nightmare began when I purchased a boat from a buddy. The bellows were shot and needed replacing. I pulled the stern drive to replace the bellows and found an even bigger mess. The seals were shot and gear lube was all inside the drive shaft bellow. I tore it apart and found the culprit so I ordered a complete seal kit for the entire drive and went to work. After replacing all the seals per the manual, I reassembled the unit, waited a few days, and hooked it to the garden hose. I ran the engine for about 20 min and drained the outer drive. The oil was milky again. I've read through the manual more than a dozen times and can't find where I'm missing anything. I have no ideas at this point; however, I plan to pull the unit this weekend to investigate. Now I did notice upon disassembly that one of the water pump bolt (nearest the oil passage) had been sheared and jerry rigged. It looks like someone did a serious number on it. I inspected the oil passage and it did not appear to be disrupted or damaged. Does anyone have any insight on what I might be missing?
Any guidance would be greatly appreciated. Thanks.