Re: water leaking where drive meets boat?
Funny you mention that, I have a very similar problem except my leak is going from behind the ring gear. My advise is to get it sealed up as quickly as possible, leaks don't cure themselves.
In my case, I have the boot which covers the drive shaft ujoint cracked and its leaking water past the drive shaft, past the seal in the "bell housing" and in to the boat. It minor, just past a small drip, but not a waterfall either.
It has the potential to by a very big DIY job, a marine shop may be able to get you a "quick fix" depending on the location and cause of the leak, or, advise you how to proceed. The back yard mechanic in me says, just silicone it up......