[frayed_knot]

CTT, you shouldn't have that much lube in the bellows. There will likely be a buildup of grease around the gimble bearing itself, but not slam full. Was it oil or grease? If it was oil, you got bigger problems, like seals in the upper gear box.

Definately put into forward gear, not neutral forward, but honest to goodness forward gear. Putting the drive back on can be a challenge because there is so much you need to be looking for. The shift cable end that goes into the outdrive needs to be in just the right position and engaging the shift rod correctly. It likes to drop down and spin off of the shift rod roller, big pain in the butt. To keep the o-ring in place for the water inlet, just coat it in grease, it'll stick there pretty good. If it wont go back on the last inch or so, recheck the shift cable thingy and make sure that the controls are in forward and the outdrive is still in forward gear ( the lower shift shaft on the outdrive needs to be pointing forward ). I just did this by myself, so it can be done. Let me know if you have any issues, I can dig up some pics or even an online mercruiser manual.