Re: need help with 1974-76 chrysler twin 60hp lower unit
The only way oil can leak out the water intakes is through a bad seal. I am interpreting "Caramel Colored" as creamy colored. This means there is water in the gear lube. Uncontaminated lower unit oil will look either dark brown--but clear, or dark greenor possibly other colors if it is synthetic. In either case if it looks cloudy, then it is contaminated with water. If the oil on the outside has a unique odor, reminiscent of sulphur, then it is lower unit oil.
Since the oil is coming out the water intakes, the most likely culprit would be the top drive shaft seal (under the water pump). However, the season here is almost over and if it is the same for you, changing all the seals would be a good idea during the winter. It is not difficult.
However, if you run these engines in a bucket, a god-awful amount of used engine oil will collect in the water and get into everything, making you think you have a leak. So the first thing would be to smell it, then clean outside of the whole lower unit, then replace the oil. If it happens again, then look for a leak.
You can buy parts at The Chrysler Crew (Google) but they will be expensive. Seals and bearings on these engines were standard and can be bought cheaper at your local bearing supply store. Just try not to destroy the numbers on them when you remove them, and specify stainless garter springs. (because it is in a water environment.)
BTW: Chrysler made a version of the 2 cylinder 2 carb 60 horsepower engine all the way up to 1984. Later models had a different mid leg and a one piece lower unit.
