1995 Mercury XRI EFI had water in lower unit

[Basser10]

Went to change the oil in my lower unit and about a 1/2 cup of water came out with the oil.  I know I need a seal but which one?  Also, I watched a few videos on removing the lower unit but one said leave it in neutral, another in reverse and yet another in forward?  Should I get a shop manual to help and if so, what's a good place to get one.  It is a 1995 Mercury 200 XRI EFI on a 1995 Skeeter Bass Boat. ANY help would be nice.

[Mike Cork]

Generally there is a kit that will have a couple seals that need to be changed because it's impossible to know which and not wise to change just the one. Always a good idea to change the water pump while there. I've never done one as small as a 40 hp but it's bound to be about the same.

As far as removing the lower unit, I always did it in neutral, but my mechanic always did it in forward, said it holds everything in place. He could pop them in, in seconds, where I ALWAYS fight them LOL.

I truly think the biggest thing is to make sure it doesn't change. I.E. if you put it in forward, make sure nothing moves until you stab it back.