Got a hold of an old Mercury 500 in unknown condition. With a new starter solenoid it fired right up. Once I knew it started I took the lower off to inspect. The impeller was shot and the lube was very thick and there wasn't much of it.

Heres my big problem though.. when I removed the lower, there was an odd part laying on top of the water pump cover and around the drive shaft. it looks like an O ring but is metal and spring like (it stretches). What could it be? it could have only come from above, I would assume. Lower end cap seal thingy of some sort? I pulled the lower end cap from the block but have no idea if it even goes there. Hate to pull the bearings and replace seals for no reason.

Picture to come

Thanks
Sam

you might be able to figure it out by looking at a shcematic on boats.net.