Scott
"old salt"
Hey, I resemble that remark.

Jim,
Bad news is that the tranny has to be remomoved, and minimally, the clutch pack replaced. You might as well have a complete rebuild done as long as it's out of the boat. Cost at some shops around here are around $700, that includes parts. Parts are about $200 if you want to do it yourself.
Gary

Kalamazoo Marine Gear did a Velvet Drive for me a few weeks back while I waited. And I didn't wait long, either. In by 7 am and out by 9:30 am. Just don't blow a nut picking it up by yourself.