Mercruiser 188/888 outdrive grinding

[syuhas1985]

Hi all so I just got my boat back from Amish country had the interior and floor overhauled, the past two days I just tuned the motor that was a pain cause I didn't know it had 351 parts lol now that's done my out drive went bad last year and my buddy had a spare... This is were I'm stuck put it on after I installed it I check forward it was good locked one way and ticked the other way (this is hand spinning), then I tried reverse there was nothing prop just spun so I went behind the motor took the end of the cable off and spun the brass ball till both forward and reverse locked and I had something. Problem I'm having is I can't get rid of the grind it just grinds then clunk I'm trying to go swiftly in gear not slow but still have a grind Im going to try to adjust again there is a quicker engage in reverse then there is forward still grinds either forward or reverse before engaging though. The out drive is a pre alpha and the motor rpms are at 800. My question Is am I stuck with the grinding then the clunk?

I have one more question lol I'm in outdrive hell the anode is stuck the bolt is stripped and its the kind with a hex bolt in a hole any suggestions to getting it out should I just drill it?..