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Won’t go into reverse

Good evening,

I have a 1996 Johnson 48 spl. The motor stopped going into reverse. If it’s in the water and I try to put it into reverse it’s just makes a clicking sound, revs up and a vibration in the controls. If the motor is out of the water and off it goes right into gear and if I put the muffs on it it goes into gear. Could use all the help on this one. Also I keep getting water in the lower unit. It's been completely resealed.
 
If you are getting water in the lower unit there is something wrong.----A pressure test needs to be done.----And these lower units are NOT considered robust.----Lots of failures on them.------I say measure the shift rod height.---Check cable adjustment.----Yes it appears to shift fine on the trailer but believe me it is not fully going into reverse.----Time to have this unit checked out or start looking for a good used one.
 
Metal bits in the oil indicate that the pinion gear and forward gear have teeth that are about to fail.-----Take paddles with you if you think you can run far from solid ground !!
 
Just take it apart !----I think you will find a mess in there.-----Start looking for a used gearcase.-----You are not the only one with one of these gearcases failing !----They just are not strong enuff.
 
Right on this site you can look up the price of the parts.----Some parts ( drive shaft ) may not be available.------Shocking what the parts cost.----Then you need the expertise or the shimming tool to assemble these things.-----Bought 4 of these 40 / 50 HP models last summer alone to boost my spare parts inventory !---And no I am not working on my first one.
 
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OK so I've taken apart the lower unit and have found the the clutch dog and both gears are quite with. Not the gears them selves just where the dog meets the gears. Also the pinon has teeth that are chipped at the bottom.
 
Can you help me with the gear lash setting? Do you have a part number for the special tools? What state do you live in? Anywhere near roanke VA?
 
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