Anybody ever heard of water coming in through the shift cable on a XR drive?
Was winterizing this yr and noticed water dripping out of shift cable up by motor. Pulled drive and it looks rusty where cable attaches to shifter in Drive.
Stumped Hmmmm.

If the shifter cavity is full of water like where the cable attaches from the bell housing....it's the back cover. I have seen them warp and allow water to pass through into the shift cavity then it forces water up the inside of the cable. If you pull the back cover and run it on a flat surface with some 2000ish grit paper usually you can get them to flatten back out and with a new o-ring should be good to go. That's where I would start.

If it was leaking where the cable comes through the boat obviously that would be a shift cable bellow bad but doesn't sound like that's what you have going on.

Will try that. Kind of weird that it was happening when on the hose winterizing.
Looking at the rust stains, I am sure it was also when running.