There is a shift shaft seal at the top of the cavity that the hole drains.
You can change that seal without taking the drive apart, assuming the shaft
isn't pitted or worn in the seal area. You just need to separate the upper
from lower to get at the seal. You will need a special tool to do the job
though.
JIMinFL

wrote in message
oups.com...
I have an alpha 1 outdrive with oil leaking out of the small drain hole
on the starboard side. Not the "oil" drain hole. This hole is a
smaller drain hole on the opposite side from the oil drain and vent
holes and toward the front of the outdrive. With the outdrive in the
"trailer" position, this hole is pretty much the lowest point on the
gear housing. I think it is there to let water drain from the prop
shaft area when the outdrive is in the "trailer" position. Since oil
is coming out, does this indicate a bad prop shaft seal or an internal
seal inside the unit? I'm trying to figure out where to start and if
I'm even on the right track.