with the rams attached place a 2 x 3 x "x" between the drive and transom.Trailer up slowly increasing the wood length as required
Gimbal bearing will most likely come out with the drive
I think they tried to use a new style core that is thicker vs the old type
Best bet is to remove everything and install a new GEN II shift cable instead of trying to make your mis-match work correctly
I'll drive as alpha 2 gen one.
Did you mean Alpha 1 GEN II
When you did the water pump did you replace the base seal ? That usually where the oil comes from. Other area is where the "quad seal" is. The small O ring that seals between the units
that or you have 2 trim lines reversed depending on your cylinders and the hoses both rear hoses to the rear of the manifold block. With 1 front and 1 rear your "shorted" together
the snap ring is to the rear of the bearing. Clean out all the grease and if there you need a very long set of snapring pliers to remove the ring. There is no need to replace the ring if using a new style bearing
pic 2 looks like the oil pressure alarm switch. It closes when there is no oil pressure and trips a buzzer or horn.
Pic 6 is the oil pressure sender for the oil pressure gauge.