Last weekend I launched my 1930 Chap, 5.7L, Alpha One Drive for the first time this season. I ran the boat down the lake to my slip, and then checked my bilge, bone dry. Came back to the boat 2 hours later and found about 1 gallon of water in the bilge. I checked for leaks and dripping under the engine and in the bilge area. But couldn't find anything. After sponging the bilge dry I thought I saw a couple drops of water just off the inside of the transom on the starboard side just about 2-4 inches off the boats center line. <br /><br />Since I had just had the outdrive inspected and serviced I thought perhaps a bellows didn't get attached properly. So I pulled the boat and took it back to MerCruiser Shop. At the shop they pulled the drive and looked for water in the bellows and found none. Then they pressure checked the speedo tube, which held pressure for 10 mins. Then they put the boat into the lake while on the trailer, and said they saw a couple of drops coming down the inside of the transom, and told me that the problem may be a bad seal on the outdrive transom plate. Then proceeded to tell me that they would need to pull the engine to get the transom plate off to replace the seal/gasket.<br /><br />Estimated cost: Materials $20-$30. Labor $1300-$1500. I told them I didn't want to pay $1500 for a poke in the dark, and to first apply sealant around the transom bracket and see if the leak stops or lessens. <br /><br />So yesterday I launched the boat ran it for 30 minutes, bone dry bilge, then 2 hours later checked the bilge bone dry. Then today I checked the bilge and found about a pint of water in the bilge(No rain or dew last night). Today, I ran the boat for about an hour and gained about a half of pint of new water. The water felt cold when I sponged out the bilge. So I don't think it's cooling water. I check under the engine for any drips and looked towards the transom under the engine but couldn't see anything dripping or water running down the transom. Yet the water is only accummulating where the transom meets the bilge. I even had the shop put in a new transom drain plug, just in case. <br /><br />My gut, stills says a bellows leak, shifter cable or drive shaft. Any ideas on diagnosing the problem. A number of years ago my father was getting water in the bilge so he pulled the boat, parked it on a hill and filled the engine compartment with water, and then water started draining out of the shifter cable bellows, where a leak was'nt even visible to the naked eye. I recommended this procedure to the Merc Mechnic who said that to do that he would need to put the back of the engine in water, which could cause more damage.<br /><br />How likely is it for the transom bracket gasket of go bad. The boats 8 years old. Any suggestions would be greatly appreciated.<br /><br />Thanks.<br /><br />jmiller