Gotcha. Thanks phat. I'm sure the shaft will need replacing - it looks quite thin between the cowl and the drive and sure ain't shiny like SS would be. After the little bit of further inspection this evening, I've determined the powerhead is going to have to come off anyways if I do in fact rebuild this motor - the sleeves for the 1, 3 and 4 cylinders are spun - their ports are IMHO badly out of alignment with the passages in the block. So once I get the motor off the transom middle of next month following next week's vacation up north I'll focus on the hull structure while the weather is "nice" and leave the OB for the winter - if I can get the powerhead free without mangling the drive. It's clear it saw salt for much of its life, and clearly was allowed to run hot so the outlook is grim. I'm fine with the labor of tearing it apart to see if it's possible to salvage but I'm not spending another dime on the motor (already ordered a Yamaha Service Manual though it hasn't shipped yet) until I'm positive it's a wise course. Worst case I can part out the good bits on eBay.
Cyl 1:
Cyl 3:
Cyl 4: