OK, after doing some research here's what I found. The one gear is made of metal and is held in place by nylon bushings. Over time, the bushings swell and put pressure on the other gear which is made of plastic. The pressure and the engine heat cause the plastic gear to soften and strip teeth which results in no oil and ruins the engine. By the time the zero rotation sensor goes off and sounds the alarm it's too late.
In 2000 they switched to brass bushings to fix the problem, but they didn't change the plastic gear. That gear, after sitting for long periods of non-use, (like over the winter) tended to get brittle and then it would strip teeth once put back into service. So the problem persisted.
One of Mercury's engineers left the company and started his own company making electronic oil pumps to correct the problem. The pumps have proven to be reliable and have a MTBF rate of 600-800 hours.