Re: 1971ish omc stringer and freshwater cooled 350
Yes, the impeller in the upper drive, circulates the water thru the heat exchanger and back out thru the exhuast manifolds. The engine water pump then pumps the coolant thru the other side of the heat exchanger, via the thermostat, then thru the rest of the engine and back to the heat exchanger.
The best way to test the drive pump is to have the boat in the water. While the engine is running, diisconnect the hose coming up from the intermediate housing, where it connects to the heat exchanger and watch the stream of water. Even at an idle, it should be a steady flow of water, with out a lot of spitting. Have someone increase the RPM up to about 2K rpm and the flow should noticeably increase.
That hose connection is the same one that you would disconnect when winterizing the boat. I always re-attach it using a silicone grease, so that it comes on and off easily.
Some say that that impeller should be changed as much as annually. My experience is that the OMC impeller, which is 3 or better times bigger than a Merc impeller, lasts reliably for many a year. (that is assuming that you do not drag your outdrive thru the sand or muck.