jp..... look again at where this leaking oil is coming from.
Is there a screw in this hole? I think what you are looking at is the lower unit oil drain plug. It could be that this screw is loose and just needs tighting. It takes a very big flat head screwdriver to tighten this screw. I made a tool to tighten this screw using a piece of 1/8" thick flat bar and grown it down to fit tightly in the slot on the screw.
If this is what you have that should stop your leak. Now if the oil still leaks, there is a thin flat "washer" like gasket on the back side of the screw head. The gasket could be bad, or maybe the gasket is missing.
Get this fixed. If you get water in the oil, it could really cause some damage to the lower unit gears.
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