Is this normal appearance of grease on top of drive shaft, Merc MR sterndrive

[windshear77]

I know the splines are supposed to be greased but is this normal to see looking up at the water pocket cover?
I'm changing the impeller and I noticed this.

 

[achris]

I know the splines are supposed to be greased but is this normal to see looking up at the water pocket cover?
I'm changing the impeller and I noticed this.

That looks a lot like a water/grease emulsification. Did the top of the drive shaft have an O ring on it? If it did, that's why you have water in that cavity, and don't put the O ring back on. If it didn't, you need to replace the bottom seal.

Procedure for that is in my 'Servicing Alpha One water pump' video. Link at the bottom of my signature.

Chris......

 

[Bt Doctur]

looks like the upper unit may have had some water in it unless the oil came out normal looking .Then it must just be some grease

 

[windshear77]

Thanks guys. No O-ring on the shaft. the gear oil was a bit milky (see photo). Replacing the water impeller kit and I notice neither drain nor bleed plug had a gasket, so i'm guessing either water came in through the plugs or leaked from the impeller assembly. Yeah i'll replace the bottom seal too, thanks.

 

[windshear77]

the O-ring was stuck in the upper housing drive shaft seals