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302 Pops and trys to die at top end ( was "newly overhauled 302 won't start".)

I don't remember if that is a nylok or not but sounds like it is.
You need to hold nut & turn driveshaft. There is a spline socket to turn the shaft.
 
I spent many hours on trying to get off that locknut, and still no,luck. I don't expect you can do a lot to help, I just have to get it off. First I bought a new 1 - 1/16 inch socket and cut it down leaving a little more room for the nut - I thought I had cut the other one back too much, but still couldn't get a bite on it. I think the hex part of the bolt is just too rounded off at this point. So I started on the bottom of the nut, which is cylindrical, but a bit conical. I got my Dremel tool and ground down a couple of flat sides and was able to get a channel lock in there and put a clamp to hold it. I did get a good enough bite a few times that I put all the pressure I could muster on the driveshaft, but still no budge. I kept flattening out those spots on the nut to get a better bite. I will use a longer lever and grind more to get a better bite, and try my vise grips, that I had left on a job.
 
I had a rainday today, so had some time to work on the nut extraction with no success. I have a pipe extension of about 3 feet of leverage on the shaft and three different tools used to try to grab the nut, all of which slip out, given enough force. I keep gringing the end of the bolt down to get a flatter surface to grab onto, but I am starting to see some threads! This freaked me out a bit. The parts listing for the bolt doesn't have a good picture of it, so I ordered a new one from the website, as well as some of the parts that I know I will need, like the forward gear and retaining ring, some seals, gaskets and etc., as I wanted to see the mass of the nut to have a better idea of how to procede. The only part that is unavailable is the drive shaft, so I can't mess that up.
I did go ahead and took the reverse side apart and found that spring thing, Everything actually looked quite good, for being nearly 50 yeats old - there was littile noticable metal fragments or any wear at all. No discoloration of the spring or anything else. The bearings looked good, so I think my reverse is good. I can see how if you got the wrong oil, the spring would slip and you would go nowhere. Anything else I should look for?
 
I thought I looked up the drive socket tool and it wasn't available, like most of the other recommended tools, but I looked it up and it is in stock, so I ordered one. I was using a pipe wrench, whose teeth align pretty closely with the splines, and keep it really tight. I tried using leather, rubber and strap material, but they all slipped. I knew if I screwed-up the splines that I couldn't get a new drive shaft, so I did that thinking I didn't have an option and used a pipe added to the handle to get the 3-foot leverage, turning it counter-closckwise, as it isn't reverse threaded.
So much for my confession.
I'll get the stuff next week.
 
It calls for type C oil.----Some folks think that type C has magical electrical properties and they are WRONG.----When the electromagnet pulls on the spring , the spring is wrapped onto the drum and drive is established.----Very simple to me.-----It will still operate with normal gear oil.
 
I have seen Mercury HP+ installed in error & slippage occurred at high power (235 hp unit)
Maybe would have been ok with a smaller engine. Drain & refill with Type C solved issue. I'm not the bone head that did it, I told mech to drain & refill.

Type C is thinner than reg Hi-Vis & I suspect thicker oil may cause cold water operating issues. Just a thought, never tried.

I've only used Type C. OMC, Sierra & Lubrimatic all with no issues.
 
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