This is the seal and washer that i pulled out. To me it seems like this seal slides in and out of the housing way to easy but fits pretty good around the shaft.
I've noticed everytime i run the outboard the gear oil gets milky. I went ahead and did a compressed air test with soapy water after I had the lower unit off. I noticed bubbling like crazy from the shift shaft seal. Went ahead and took apart the gear case/lower fin to get at the seal. Even tho...