Hi Rick,
you and the other support guys have really helped me through some difficult task.
I believe your method seems easier but still a little challenging for me but I am going to try it.
Yes.... much easier than trying to remove or reinstall a complete drive assembly.
When you remove the transmission, carefully inventory the shims that will be just underneath it.
These shims must go back in just as they were.
I believe somewhere in a service manual it said to apply some kind of water proof gasket sealer when setting the gear box in place- what kind and how much to apply so there is no leaks when I bolt the transmission on to the intermediate housing
O-rings intrinsically do not require any sealant.
The areas around the perimeter of the O-ring are sometimes subject to what we call "crevis corrosion".
If in fresh water, water-proof grease works well.
If in ocean water, QuickSilver "Perfect Seal" works well, and is what I use.
and do I put blue loc tite on the bolt threads .............
Not necessary.
or some kind of anti seize thread compound?
Automotive Never-Seeze or Anti-Seize contains conductive materials, and should not be used below the water line. If used below the water line, these conductive materials will cause problems.
There is a Marine Anti-Seize that does not contain any conductive materials.
Or you can use a thread sealant to prevent water intrusion into the threaded areas.