First, Its is a Alpha 1 Gen II
Second, How mechanically inclined are you and do you have ANY Mercruiser special tools need to work on an outdrive?
first step is to drain outdrive of gear oil.
Next remove drive from boat- best to have a stand of some kind to support the drive when off the boat
Next pressure test to about 15 psi to find any leaks.
If what BT doctor said is true, below is a parts diagram of the upper gear case showing the parts.
Items 16 (Oring) 17 & 18 are the carrier ring and seal [item 18 -This is what may be the issue] Typically 17 & 18 come pre-assembled or you can purchase the seal itself and press old one out and press new one in to seal carrier ring.
Now to get that bearing/seal assembly out of the housing you need a special tool to remove the large housing nut and a service manual to reassemble and torque the shaft nut to specification (requires a analogue (round gauge type) Inch/lbs torque wrench and able to do a rolling torque set up.
First step though is to pressure check entire outdrive to identify the leak. This has to be repeated after first leak is fixed and drive is reassembled to confirm no additional leaks.
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