where exactly is the fluid comeing from? if its pink trans fluid then its probably a rear seal leak and youll most likely have to pull the engine/trans out to do it right. If you have gear oil leaking then it can be you drive...there is an oil passage through the transom to the drive. You have a small oil res on the right hand side of the transome plate on the inside of the bilge area where you can top off the drive fluids...

its defanitly trans. fluid, leaking big time, there's a puddle back in the transom,i guess i'll have to pull everything,Oh well,
Thanks Wally

Since you have to yank the drive off anyway to get the whole thing back together later....yank it off first and take a look at the rear through the transom assembly.....see if your crafty enough to try and fix it that way....i would take the easier route and yank it myself

i was thinking the same thing, anything is better than pulling the engine, i'm not very experianced with this stuff. I know a guy who is, he's been out of town, should be back later this week, i think he can do it. I can help Thanks Again!
Also,probly dumb question, but, my fuel pump was dumping gas into the carb. thru that little hose , was told pump is bad,
replaced it myself this morning, checked my oil its over full,
would tha bad pump, pump gas into the engine?

A ruptured diaphram in the fuel pump will result in gas going into the tube. That excess gas might be flowing by the rings and filling the crank case. Or fuel can fill the pump and flow into the block through the pump rod pasage.
Either way, replace the pump and change your oil before you try to start the engine again.

Da yea ,I felt liquid in the engine when i went to raise the rod, it wasn't oil,thats when i checked the oil, way over full, thats when i came here Thanks rdoactive