Gear Oil leaking from lower unit - 84 Alpha One Mercruiser

I have never noticed before if this is a problem or not as the boat is typically stored on a lawn, but now that my boat has been in the driveway this summer I've noticed I've got gear oil leaking from the lower unit. I recently took the lower unit apart to replace the impeller, but it's been used for about 8 hours and now that it's been sitting in the drive for 2 weeks, I've noticed the gear oil leaking from a small hole on the LU, opposite the fill hole, on the starboard side. It's not much, maybe only 1/2 ounce or so but nonetheless concerning. Is this okay or did I screw up when putting it back together? I was very careful to replace and seat the o ring between the upper and lower.

should not be any leakage at all. from the hole could be the pump base seals or the shift shaft seal

The real small seal i use grease to hold it in place.

The shift shaft seal has to be replaced when you replace the impeller.

The correct wording is bushing but all it is is a seal. Some kits have it included some not.

http://www.marineengine.com/parts/m...5577-thru-0d469858/gear-housing-driveshaft-mr

#49

To confirm pressure test the drive 10-12 psi and wiggle the shaft, you will hear the air.

Everytime you shift the bushing gets worn.

AFter reading your post, I looked in the upper unit after removing the lower unit and saw a broken ring with a spring hanging across the shaft hole.

Then I got looking around and I found the second attached picture of this seal. Is this the seal you referring to?

maybe 27 or 28.