Sorry for the driveby folks, but I need some information and as hard
as it is to believe, there actually are experts here. :)

I came across a very nice 23' Proline - garage kept, trailered, kept
in a similar fashion to my Ranger - hull, cabin and interior are in
mint condition. The 5.7 Mercruiser was replaced about two years ago
and has less than 60 hours on it. I was asked to take it for a ride
and check it out for an estate sale.

The outdrive, which I think is a Bravo II, sounds like it want to come
apart at the seams. It grinds into and out of gear, there is a
vibration coming from it at speed that is VERY annoying (it's not
coming from the engine) and the gear oil (which I checked after
running it for 15 minutes) is milky - the oil plugs have metal pieces
on them.

Obviously something is wrong with the seals (or drive shaft or gears
for that matter). I pulled the prop and checked for misalignment on
the drive shaft, but everything looks pristine and clean - there
doesn't appear to be any slop in the shaft itself, but when I put it
in gear and move the prop back and forth, there appears to be an awful
lot of gear lash - which is not a positive sign I'm thinking.

So, here's the question. Assuming that there are broken gears and what
not (leaking seals, etc.), would it be better for the estate to have
the drive rebuilt or purchase a complete drive and have it installed.
I admit it, I know nothing about outdrives, so I'm at a loss as to
what to do. The estate administrator does not want to sell it as is.

Anybody?