Just an info update for you guys, in case you run into the same type of problem. There is a well respected boat shop near here and I found out the following. Though I still could have a leak if I have had any water in there it is likely coming thru the washerless screw on the unit. Also the consistency I had in the white oil is not consistent with water in it, several marinas and shops at least in NJ use an very inexpensive oil in the lower units called Lubriplate, and it is white to off white in color, and cheap. Lot of places stopped using it because it was hard to tell if water was in it. Also if you get a service done on your lower unit and you are told it was pressure tested that is only half of it, it also has to be vacum tested because there are back to back seals. The third thing is if you have any doubts about what you have in your lower unit you should flush it before filling it again with clean oil because the the old stuff and water will contaminate it and you won't get an accurate picture of what is going on. To flush it you use Mineral Spirits. Put it in and let it sit and then drain it all and let it seep for a couple of hours. Then use clean oil and fill I'm sure some of you guys know these things already but I did'nt and wanted to put it out there