The V-Drive was full of water. If you are familiar with the smell of rotting silage, you were there. It had been run in this condition because the output bearing and seal was wiped out. It was so bad that the output shaft was grooved where the seal rode. A "tire" was machined out of 304 stainless to fix the area. The shaft was cut down on a lathe, and the tire was pressed on to the machined step. The OD (outside diameter) was turned on the lathe to match the original. I replaced all of the seals, bearings and U-Joints that I purchased from Walter. The bill was around $250. I made all my own new gaskets.
(http://i153.photobucket.com/albums/s233/dtskibo/Fuel%20Tank/PICT0043.jpg)
This is what a dissembled Walter V-Drive looks like.
(http://i153.photobucket.com/albums/s233/dtskibo/Fuel%20Tank/Walter1.jpg)
I coated the inside of the box with a product called GKYPTAL. It is used to insulate and coat electrical motors and allows oil to drain quicker on internal combustion engines. You typically see it on show car engines. I did it to protect the inside of the box and because it looks pretty!
(http://i153.photobucket.com/albums/s233/dtskibo/Fuel%20Tank/Pearson365013.jpg)
The output shaft was damaged where the input seal rode. I suspect that it got wet with bilge water while it was running and washed the internal lube away. The bearing was next to go and the seal housing did the damage. This is similar to what you see on trailer wheel bearing spindles when the inner grease seal goes.
(http://i153.photobucket.com/albums/s233/dtskibo/Fuel%20Tank/Pearson365017.jpg)
The "tire" was installed and turned to match the shafts diameter. Better than new literally because the tire is made of stainless.
(http://i153.photobucket.com/albums/s233/dtskibo/Fuel%20Tank/P365030.jpg)
My son Eric installing the box. Better him than me, it was in the 90's in the boat that day with that famous Chesapeake Bay humidity.
(http://i153.photobucket.com/albums/s233/dtskibo/Fuel%20Tank/July2006006.jpg)
I replaced the output coupling shaft hex bolts with socket head cap screws because it is nearly impossible to tighten the hex bolts. The allen are so much easier. You can see the stainless safety tie wire. Better safe than sorry.
(http://i153.photobucket.com/albums/s233/dtskibo/Fuel%20Tank/21thWeekend008.jpg)
Done