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Driveshaft is vertical and the propeller shaft is horizontal.------Which one are you working on ?-----When the water pump is off the driveshaft pulls right out.-------Why are you replacing the driveshaft / pinion bearings ?
An OMC factory service manual would take you through the steps on how to repair it properly.
Your best bet is a complete used lower unit !!!
No there is no seperate copper water tube on these motors.