If they drive moves up and down, a couple of things maybe at fault. The upper swivel shaft where it holds the gimble ring is loose probably from corrosion [steel swivel & aluminum ring] resulting in the ring moving lower. When it was new there was .025 gap between ring and transom plate. as it loosens and begins to show play up and down they drive falls out of alignment with the engine. That played a part in your bad bearing. Left un corrected the trannie may eventually fail because its rear bearing wants an aligned shaft going into it. You can rebuild like Ted has mentioned if the swivel bearings aren't wobbled out, but you probably need a new ring too. Best case would be to tighten top swivel shaft nut. to do that you need the access holes or remove the whole assy. Sorry for the bad news.
Jim

Konrad !