Drive oil leaking out of water intakes on side of drive
 

Did a seal let go between the uper and lower? I dont mess with outdrives.

Yep, most likely a bad seal between the upper and lower. Its a piece of cake to put in new seals. 6 nuts on the top and a bolt under the lower zinc and its apart. Just drain the lube first.

I never touched a drive till about a month ago. I installed a larger spacer between the upper and lower. It took me about 2 hrs start to finish and 20 mins of that was letting the lube drain out.

Yes thats what I thought to . I just had both drives done 10 hrs. ago.

When you say you just had the drives done 10 hrs. ago, do you mean they were gone through. If so, I would be placing a phone call to my mechanic and have it gone through again and done right. Either they didn't replace the seal or they did it incorrectly.

just had my lower done 1 week ago - same thing, oil coming out of water intake after sitting for awhile, it's the little orange seal for the oil passage between upper & lower (mine was missing) sound like the same problem EZ fix.