OMC 400 Outdrive stuck in fwd.

Okay I've managed to get the motor running, buyt have now realized that it A.) a stuck in fwd, and b.) is overheating.

I took the prop off and the lower unit of the outdrive off, and removed the cable, but what I've realized is that I can't slide the shifter up and down like you should be able to and I can't get the shaft out. Do I need a puller? I've removed the 4 bolts for the plate, and the upper bearing came out with some spacers but I can't get it out of the fwd position. Any ideas? It (the drive shaft) will also turn about 1/2 a rotation before the propellor shaft will start to turn, and makes a clunk.

Thanks
Jon