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Hello! I have a Chaparral 260 2004 and I was cleaning the engine compartment when I noticed the lube oil container was half way down, I tracked and didn't see anything! until I checked the outdrive and saw a small leak! I look on youtube and they talk about replacing the gasket, which I believe It is to keep the bearing greased. any help here or recommendations. thank you so much. pictures are in the link if they can assist. 

https://flic.kr/p/2k1B9gp

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Your outdrive is actually 2 stacked gear cases. You have input shaft seals and out put shaft seals on both. There is a oil transfer hole seal between the two half's, and a small o-ring between the drive and gimbel that seals the oil passage up to the engine mounted oil bottle. There is also an oil transfer hose between the gimbel and transom. First you need to determine where the oil is coming from, as it could be a simple fix, or much more involved. If you cannot not determine the origin, then it's time to drain the drive and do an air pressure and vacuum test.  W

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Typically the level will go down a bit in use. I think it is because air bubbles worth their way out in use. The reservoir really serves no purpose other than providing a reserve of fluid and alarm in the case of a serious leak. It also allows the entire upper gear case to be immersed in oil. I would simply top it off and monitor.

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On 10/30/2020 at 8:31 PM, drewm3i said:

Typically the level will go down a bit in use. I think it is because air bubbles worth their way out in use. The reservoir really serves no purpose other than providing a reserve of fluid and alarm in the case of a serious leak. It also allows the entire upper gear case to be immersed in oil. I would simply top it off and monitor.

He did say he saw a visual leak on the outside of the out drive.

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