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Water in the Bell Housing

I've just purchased a 78 318 raw water cooled engine. I'm putting it a 20' correct craft and I'm using the transmission that came with the boat. The new engine came with a Paragon 21R on it. I pulled the transmission and it looks like a lot of hot water has been behind the engine.
I had fired the engine up to make sure it would start and idle before I bought.Ran it for a about ten seconds since no water was being pumped into the engine. Pulled the dipstick no water in there. There is some evidence of antifreeze in the water intake hose and the guy I bought it from told me that he had winterized the engine. The freeze plugs all seem to be ok. I've since pulled the thermostat and filled the engine from there with water. No leaks but no pressure is being built up. I'm new to Marine engines so raw water cooling is almost a mystery to me. I'm planning on changing the freeze plugs on the back while i've got the flywheel off(I know I need brass plugs). So would the rust in the bell housing come from bilge water or would it been from water coming by the freeze plugs? Is the rust evidence of overheating? The motor came out of a Chris Craft cabin cruiser so it was completely below deck. So I plan on replacing the impeller on the water pump, thermostat and freeze plugs. Put the velvet drive on and fire it up with a garden hose hooked up the the intake hose for a water supply. If anything I've said sends up red flags let me know. Thanks for any help!
 
If you don't see any signs of old leaks at the rear frost plugs, it's possible that the hull took on water at one time. Look for signs of high water elsewhere, perhaps a greasy line along the oil pan or bell housing. Check out previous water pump threads; very helpful. Use a lubricant like dishsoap on the new impeller.
 
Thanks woodieman, I'll check those threads out. What would be a sign of a leak at the freeze plug? Anything I've run with straight water in it didn't stick around long enough to see a good hard freeze. Maybe I'll get some pics and you guys can have a go 'eh?
 
If it's been leaking for a while rather than popping off, you'd see some sign that water has been leaking through the plug like a rust or deposit track or some corrosion around the plug for example.
 
The rust could come from either high bilge water or a leaking freeze plug. Rust in RWC engines is normal--especially if the poor thing has been used in salt water. By the way, while running, very little back pressure builds up inside the motor--that's why relatively cold t-stats are used (to prevent boiling inside the heads).

For a guy new to boating you're on the mark!

Jeff
 
The rust could come from either high bilge water or a leaking freeze plug. Rust in RWC engines is normal--especially if the poor thing has been used in salt water. By the way, while running, very little back pressure builds up inside the motor--that's why relatively cold t-stats are used (to prevent boiling inside the heads).

For a guy new to boating you're on the mark!

Jeff
Thanks I've got a mechanic/farmer for a dad and a mechanic/excoastie as a father in law. I'm just regurgitating what I've learned from them. Thing is none of us are inboard guys and appreciate all the help we can get!
Thanks
Scott
 
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