MC 1 drive gear oil leak

[kodi2326]

I have a 1979 Arrow Glass Cheetah that has a Mercruiser 165 straight 6 250cid with a Mercruiser 1 outdrive. Recently I replaced the shift cable but noticed gear oil leaking into the prop shaft. Pressure test confirmed leak with sound coming from prop shaft area. Separated lower and pressure tested that to find small leak from shift shaft busing. Pressure tested upper with no issues on pressure loss, however I believe the gear oil leak is coming from the shaft when mated to the upper, there was gear oil on water pump housing. I looked at the seal and there is a space between the seal and the bottom of the cavity that it is in. Am I missing a seal? or is this the space for the oring on the shaft?

 

[Bondo]

Ayuh,...... Welcome Aboard,...... I believe you'll find that the top seal, seals against the gear that the shaft slips into,......

Just grease on the splines is held by the seal yer concerned about,......

 

[kodi2326]

Thank you, wasnt sure what that seal was for. The shift shaft seal replacement fixed the leak.