I posted over in the tech session but was hoping for more views/responses over here.
I have an '03 33 Baja Outlaw w/ twin 496HO w/ Bravo X w/ approx 135hrs.. Doing approx. 4000 rpm when all of a sudden alarms went off. Shut it down, all temps, fluids and temps normal. Restart no problem but rattling on port side even in neutral. Shut down again and limped home on 1 engine. Put in forward gear and now its stuck in forward and won't restart b/c of safety switch. I'm on lift now and waiting for my shop to open tomorrow. Any ideas? Hoping for a quick & easy fix that can be done on lift b/c impossible manuevering at my place to the ramp on 1 engine. TIA.

Sounds like the cone clutch in the drive went but you would have to have a temp sensor in the drive to set off and alarm, or all the drive oil is gone and thats what set off the alarm.

Definitely not gear lube. Its in the range at the bottle. would I be hearing that rattling even in neutral?

Well if it is burnt up and welded together it was kinda in gear even when the shifter was in N. I had my BlackHawk drives on my P29 do this alot and the uppers are the same as bravos. I never had any alarms go off but the P29 is a 1996 so they may have added sensors on newer stuff.

Doesn't the 496 have a knock sensor?

It does have a knock sensor. Chances are the vibration from the rattling drive triggered it.

Biting my nails waiting on mechanic to make it out to my lift to diagnose. Wondering is the Merc extended warranty 1 + 5 yrs or 1 + 4 yrs? If its + 5 I'd be 1 month out of warranty.

The verdict is in. Damage to either the shaft or u joint in upper case. Mech called Mercruiser for coverage, who told him tough luck as my extended warranty expired 3 weeks ago. 6 years and not a single claim, 130 babied hours w/ meticulous service records and I get a tough luck. I begged for some consideration and all I got was tough luck. BS, I'm done w/ them.

Try calling merc direct. Sometimes if you make enough noise they will give you the parts and you pay the labor.

That's exactly what I did. I explained the whole situation and asked/begged for some sort of consideration. I got nothing. Wouldn't even transfer me to a supervisor. Said that is the policy despite the fact that many have told me otherwise. I remained calm until I get an estimate for the repair that I'll see how I'm going to proceed. Quite disappointing though.