So now u need new lower unit?

Yes. Luckily it is still under warranty

The seal was totally shot. Let all the oil out and all the water in. It also WASENT a factory mercury lower unit. I was one of those infamous SEI lower units. If you havent heard of them you should do some research and that will tell you what you need to know!

Which seal?

Prop side. I didn't notice any oil on my carport because it all leaked out on the water.

Bought a mercury in may so I wanted to know where to check. Thank for the info

OBG not a mercury what next a yammhamer, hey what can I say, y'all jump all over a E-tec or any of the other motor's. Just a little pay back.

Its not the motor at fault here. Like I said earlier, the foot was one of those 'Chinese' lower units. Not the original mercury lower unit. I've read about the horror stories with these SEI lower units on all makes mercury, Yamaha, rude,

This is what happens when carburetor cleaner comes in contact with a SEI lower unit!