OK guys, here we go-Thought I'd share this (and ask a few more questions):
I dropped the gearcase this evening, and found that, indeed, it is the shift shaft seal that appears to have given up the ghost (as everyone predicted; see pics). Parts (and tools) are on the way to repair this, and appears to be a straight-forward repair. However, this is when I started noticing some things that "bothered" me:
1). When I got the gearcase removed from the mid-section, the water-pickup tube cam out with it! Now, in my days as a "blue" motor guy, I never saw this! Is this as simple as removing the tube from the waterpump and re-inserting into the powerhead fitting?
2). The alignment sleeve for the pickup-tube to waterpump has melted onto the pickup tube. (I was aware that this would happen after I removed/trashed the exhaust-can and modified the exhaust tuner). What is the easiest way to get this off the pickup tube? I was thinking torch emoHoppingmad
3). A quick look into (up) the midsection, and I noticed that the driveshaft seal didn't come with the driveshaft when I dropped the gearcase. I am thinking just re-aligning it in the hole before I reinstall the driveshaft/gearcase?? The thought of pulling the powerhead and having to wait for more gaskets is giving me heartburn emoVomit