Yamaha 40ELJ 86' problem

[Curapa]

This is the engine that is on my buddies 84' Bass Tracker and it has a couple of problems.

For the past few years the engine has had a squeak or chirp noise at various times while underway. Sometimes it will occur when idling, sometimes when at half or full throttle. It is usually inconsistent but it has gotten worse over time.

We have been told that there is a bearing or seal under the power-head that is probably making this happen. Any ideas as to what this is?

On our last outing the engine began to bog. We limped back to the ramp and found that there was water in the cylinders. The water was removed, put on the muffs and ran again with the same results. Could these two issues be related? I am thinking they are not, maybe a head issue?

Sorry for the lack of detail but this is not my motor. Just trying to help.

Thanks,
Curt