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..... How is the shaft in the motor? .....
It is very similar to a shaft of a manual transmission in an automobile.
The shaft forward end has a necked-down section which fits into the crankshaft.
The crankshaft has a pilot bushing (Unless previous owner left it out.)
The forward end also has splines.
These forward splines grab a flex plate which is bolted to the flywheel.
(In an automobile, the clutch has the splines, the pressure plate bolts to the flywheel.)
In a boat, the flex plate with springs take some of the shock out of the driveline when you put the boat in gear.
The shaft does not rotate continuously in the crankshaft bushing(as a automobile manual transmission at a stop sign with foot on clutch pedal). It only moves a few degrees clockwise and counterclockwise to absorb shock.
The forward end is far enough from the water to have probably stayed in good condition.
Now, if the crankshaft bushing looks OK, reuse it with a bit of waterproof grease.
I did not have a bushing (previous mechanic was ignorant of the design).
Rather than buy or make a bushing, I used a sealed ball bearing which you can see in the picture.
The bushing to the right is from the automobile automatic transmission application which had a different internal diameter dimension. So I could not use it. (Third picture shows my bell housing with shaft still installed, and incorrect bushing hanging out.)