Hi Gary,
The manual came in today. I have spent about 5 hours just pouring thru it. Interesting, learning all the names for things. I have gotten pretty good at rebuilding lower units for older outboards, but this sterndrive is amazing in it's complexity.
I also learned that there isn't much you can do without a truck full of special tools.
I am really curious now to pull the sterndrive and get it home to take a look at it. Maybe this weekend. Maybe it is just the upper gears (but I don't think so...!)