No, the water in the gearcase is not normal. Not unusual, but not normal.
It is normal for the unburned gas oil goo to ooze out of the exhaust areas. The goo is usually black and smells like gas. Gear oil is brown and smells like sulphur.
do i have to remove the starter to access the shift linkage bolt. would you think there is a bad seal somewhere? and how much cost to have it repaired?
You do not say what motor??
Have to start with the year of the motor.Or a model number Usually appears on the top front of mount bracket.
Try to keep everything in one thread. You have 3 going on this same thing. I answered you in one of them.