yes, it's been a while but have returned to the boat.
engine finally out and on the ground.
found, to start with, looks like the transom on the lower left outside gimbal housing has either been over tightened or somehow dented allowing a seepage to occur at the bottom of the cutout of the transom for the outdrive. it also looks like the previous owner loved grease. there was a pile of grease on the bottom of this cutout from greasing the coupling assembly. that allowed the seepage to be in contact with the wye tube bottom. outcome was that the bottom of the wye tube was basically dissolved. two stainless 12pt bolts still in place but the lower housing was gone. since the wye tube was so damaged it only figured that the gimbal base was also damaged. another one on the way in.
i think if the grease hadn't formed a dam the seep would not have resulted in such damage and being salt water would not have had an impact on the wood of the transom.
this buy wasn't my greatest decision. a warning to newbies to i/o boats (i'm a former sailboater), if there is salt water in the bilge, run the other direction, don't pass go and don't collect $200. it's going to cost a lot more than that.