Is starting an engine in gear with a velvet drive transmission and mercruiser 5 drive ok? Or, is it better to always shift from neutral into forward/reverse? I would imagine its harder to get the engine started since its now turning the drive..... Just a thought, was seeing if it would be easier on the transmission instead of shifting all the time.

Doubt it makes any difference on the transmission either way.

I would think it would be hard on the clutches.
ex, Start in neutral, pump builds pressure, put it in gear and it immediately applies clutch.
ex. Start in drive, pump slowly builds pressure and slowly applies clutch.

Not turning the drive when it's starting. Trans has to build pressure to apply clutches. This would be more of a safety factor.

A trans is made to shift gears and unless the rpms at idle are way high, shifting hurts nothing.

Just keep the idle below 1200rpm, and youll be fine. And dont apply lots of throttle in reverse. They dont like that