mb 300d marine conversion
An interesting project if ever there was one , a couple of points come to mind
The 300d ,OM617 engine is rated 77HP at 4000rpm and around 120 ft /lbs of torque at 2400,as you can see it is not blessed with power or torque ,therefore your sterndrive unit will probably cope ,also a firm by the name of Lancing Marine in the UK had a marine conversion kit for this engine ,so it has all been done before ,although probably shaft driven .
But!!!! taking into account the engineering work involved,and also whether the 300D is a suitable engine is quite another matter ,although these engines ,with the correct coolant will run at 100C and over ,a 10 minute coolant boil will result in a cracked cylinder head or worse ,trust me ...
The coolant passages in these engines are incredibly small ( quick warm up )
So all in all,probably not a good way to go , a lot less headaches and easier on the pocket would be to rebuild your present engine .
How do i know all this ? I own a MB300D and have done so for fifteen years
But then thats just my opinion ....cheers