Iceman, If you have water coming in where the driveshaft comes thru the transom then you've got problems . Either the bellows is bad, gasket between the gimble and drive is bad , shift cable bellows is bad,or the shift shaft seal is really bad. In all cases the drive has to come off and inspect fo damage due to water contamination. Ujoints, shift shaft seal, gimble bearing, or a bad bellows. Good luck Greg