I will just second the idea that we all should check alignment of the engine and shaft at the coupling (.003" is OK but bigger is a problem--loosen the top nuts and turn the lowers only a quarter turn at a time as it does not take much to make a big difference at the coupling) as this does shift over time with wear. Like the others mention, I have not noted a big alignment difference when the boat is in the water or out of the water---on a T37 it does not change much--though this can be an issue with some other, more flexible boats. I am convinced that most rear oil seal problems and transmission problems are really the result of running a misaligned shaft and engine---that vibration is not just annoying it is hard on the running gear. I also agree that you should get the shaft in the center of the tube if you can. In installing a new engine, you run a string through the center of the cutless bearing and the center of the tube to locate the position of the new engine (center of the engine coupling). FWIW Ray
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