I have a 1976 70hp johnson sea horse. Its been giving me problems staying on when shifting into forward. Ive been working on the carbs and and other fuel related issues. The problem Im having now is...I was working on adjusting the carbs and I had the boat out of water with the muffs and garden hose running. All of a sudden the motor started running rough and started smoking out of the exhaust coming from the center of the propellar. I shut if down and saw gear oil coming out behind the propellar. I removed the propellar and bearing housing assembly and found the gear oil had very small metal shavings. My question is what should I be looking for to see where the shavings came from? Also does this mean the lower unit is no longer good?

