"Ok Chris, one issue at a time
"Ok Chris, one issue at a time.
That white plastic piece is a strainer to help keep crud out of the pick-up. Not the end of the world, but worth heading to Merc and getting a replacement.
The water leaking when tilted is somewhat normal. There is no positive seal between the gear housing and the exhaust housing. The exhaust housing in normally filled with water. Most goes out the exhaust, plus there is at least one relief hole to help the last of the water to exit so it doesn't freeze and crack something. That extra little leak is not hurting anything.
Your last issue, losing oil. Do you simply have black, burnt smelling oil dripping from around the base of the prop or out the prop itself.
That too would be normal. All the burnt/unburnt oil and gas goes right down the leg and out the prop.
You normally don't see it because it ends up in the lake and it ususally doesn't drip unless warm. So even when you haul it out of the water, it drips on the road during the trip home. But sometimes you will see it on the floor of your parking spot.
Gear oil is usually a honey colour, if this stuff is black, it's just exhaust oil..."
