doea this shaft run in gear oil on the top. I noticed there is an oring on the shaft and there is a seal in the upper half that also runs on the shaft. Thanks.
No its there to help keep water out of the splines but its not an issue. grease the splines during the install of the lower unit.
The oil seal is in the upper unit and the smaller driveshaft seal is the lower seal in the upper unit.
That is the water pocket cover , no oil there. If its leaking down the shaft then its the upper seal thats bad.
Open that link and go to 3A-10 part # 13
