the 3.7 is a 4 cylinder that shakes vertically like a dog passing a peach pit. it is an aluminum block, iron head issue prone motor. its half a ford 460 and parts are getting hard to find
the B20 motor is easy to find as they powered milliions of volvo cars. the AQ100 drive is ancient.
what...
If it only leaks when the engine is running, you may have the wrong filter or the old gasket was still there when you screwed on the new filter
If it leaks as you are pouring it in. You have a hole
If you leave it.... Best case, you fill your bilge with exhaust fumes
Worst case, if your running rich, you could fill the bilge with fuel fumes and you have an open ignition source
I would fix it
and every spec on-line says the '89 1700XR is outboard with an 85hp Force.
As a former cheesehead, Registering in person used to be easy, especially the Green Bay office on 29.
in other thread, I posted the link to the DIY sticky information in the restoration forum. everything you need is in that restoration sticky (3rd down) in links 14, 15, 17, 18, 2, 3, 4a, and 4b for fiberglass work.