If this is the case does the throttle/shift control works properly and the outdrive shifts to the correct gear?
forward, neutral, reverse?
If it is hard to shift then it may be a couple possible issues.
1. the stainless steel verical shift shaft in the gimbal housing may be tight (the shaft that the bronze shift arm connects to). this is checked with the drive OFF. It should move very smooth and easy.
2. The short shift cable is binding may need replacement
3. is there excess debris behind the funky looking aluminum shift cable end that sticks out of the bell housing? If so, the hole on the back side can and does fill with crud and causes the cable to move hard and may not shift completely into reverse when shifting by the control handle.
If this is so then let us know.