1985 Chaparral 235xlc Merc 260/alpha 1 combo. Tore my skeg off, bent the prop shaft and ruined my custom spinelli ss 4-blade. A marine mech is telling me I can't replace the prop shaft?? I was under the assumption it was a simple if pricey job of replacing the propr shaft, weld on new skeg get annother prop and go. I guess I need some help or if someone has a good lower that works.

Be cheaper and easier just to get one of these and they come with a 3 year warranty. About $750 for the lower only.
http://www.sterndrive.cc/

Skeg repair $150-250
Prop shaft $100 used-$425 new
labor-gaskets-seals $200+

What about the rest of the gears, shafts and the housing itself?

I put an SEI on my Sea Ray last year, its a bit loud at first but after the break in period it is not noticable. Much cheaper than the rebuild I was quoted. It has held up fine behind my 220 Sundancer.

The prop is missin about 1" off the end of 3 blades. The skeg is cut down all but maybe half an inch. The only damage to the casing is small non important crack where the prop impacted the sleeve is spins inside. I'm trying to keep cost down. i've researched like crazy. Can I run a 1.81 ratio with a 23P? My prop is/was a custom 4 blade 19P

It goes in and out of gear fine in both forward and reverse and spins smoothly other than the bent prop shaft

Are you talking about the one you crashed being a 1.81 and fixing it and using a 23P 3 blade or what. Rule of thumb when going from a 4 blade to 3 blade you go up one size which would be 21P 3 blade. What was the max RPM it would turn the 19P 4 blade?

You just don't know how much damage might be done in that drive until they open it up. Even though it spins smoothly it could have broken teeth on a gear. If they repair it their also going to recommend a new water pump while it's off which will be more to the bill but would also be the right thing to do. Your just going to have to figure out exactly what it is going to cost to repair that one compaired to a new lower. Chances are there is no way your going to do it for less than the price of a new lower $750 and have a 3 year warranty to boot.

Alright you guys just about have me convinced... The current outdrive is a 1.5 gear ration (1.47) spinning a 19P stainless spinelli custom (well that prop is no more) I researched a ton and heard good things about going to a 1.62 or 1.81 gear ratio. So either a 21P-23P 4blade. Am I right?

Yes if you go to a lower ratio drive like 1.62 or 1.81 then you can increase prop pitch. That engine is rated for 44-4800 rpm max so you will want to prop for that.

Wait... I thought my 260 could spin too 5200 without issue?? I pull a fair number of wakeboarders and like the occasional speed run. So if I end up with the 1.81 it looks like a 22-23P 4blade to pull and maybe a 24-25 3-blade to run?