Oil leak Velvet Drive

[dhubbard]

I have a 1980, Diamarco, 21 daycruiser. Has a 7.4L chevy with a Borg Warner Velvet Drive, and a Mercruiser outdrive. Has performed perfect but, has developed an oil leak at my velvet drive (red fluid) that is leaking at the transom of the boat. When run for a period of time, I can lift the rear engine cover and fluid and water will actually leak right down the transom of the boat to the bilge pickup. Assume this must be a seal. Anyone have any ideas or dealt with this?

[stonebreaker]

First thing you need to do is figure out where the leak is coming from. Clean the transmission thoroughly and then take a drive, see if you can see where the fresh fluid is coming out.

[dhubbard]

I have noticed that the oil flows directly down the back of the transom and even lets water in the boat. Is there some kind of seal or bearing guide that the drive shaft runs in that connects the velvet drive to the outdrive?

[Jeffbo]

I have a question about the velvet drives also. I am looking at a 26 ft Slickcraft with a 454 and Mercruiser outdrive. The guy says that the transmission needs to be rebuilt.

Do they have parts readily available for these things?

Are these transmissions good units and worth fixing? I have never dealt with them before.