My outdrive will move quite a bit in either direction. I have noticed all the play is in the top pin where steering arm connects. When I grab the outdrive and move it left and right the steering wheel doesn't move .the play isn't in the steering rack or cable it's in the outer transom bracket. I can also lift the drive up and down . Pretty new at this but is there a bushing that's wore out or something else. The bottom pin seems tight as are the side pins where the tilt trim sending unit is. Any ideas ?

Going through the same ordeal on my 260, but I'm converting to full HYD STEERING, no more freak'n cable.

2 people needed.
1st: Have someone lightly turn the steering wheel back and forth while you attempt to hold onto the drive.
2nd: Do the opposite, hold the wheel and move the drive back and forth.

This should tell you if its in the helm/cable or the drive area.

Next, disconnect the pin from the steering cable at the transom, hold the drive while attempting to move the steering arm/lever.

You should now know where your problem is exactly.

From what you're describing, sounds like your gimbal ring is shot

Usually you can lift the drive by hand,up and down and see where the worn out parts are on the drive.look at the tilt ram eyes and see if you see movement on the front or rear bushing eyes.also look at the top and see if you see movement where the square shaft is going through the gimbal ring.if you move the drive side to side by hand look at the square shaft and see if the shaft is moving with the gimbal ring.on the mercruiser drive,the bushings for the tilt Rams are easy to change and cheap to replace.there is also a u bolt with 2 nuts that squeeze the square shaft that goes through the gimbal ring.sometimes they are loose,don't over tighten them.if that dosen't work the gimbal might be worn where the shaft goes through.the square shaft is steel,gimbal ring is aluminum.

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