Thought there was an O ring as well but I am thinking im wrong. this is the packing I was refering to http://www.skidim.com/prodinfo.asp?number=GFO1/4X24
, there is a 'how to' in the FAQ's area on the forum that gives you a good idea how to do it. this should stop the water from coming through the shaft....dealt with this last year. Not sure how familiar you are with inboards.....looks like a good project boats....lots of elbow grease and she will come back. Would recommend a cover that goes over the sides as well to protect that red, once it fades it will always fade faster it seems. I know ranken and some other cover manufacturers make them.