I think I might have looked at the wrong snap ring and thought that wasn`t my problem. The snap ring in the very back of the case on the tail shaft looked good, but I am now thinking that just holds the speedo gear on. I tried to pull the tail housing off and it would not come off all the way.

Is there another snap ring I should be trying to look at ?

Why will the tail housing not come off ?

Thanks in advance again,

 

The housing is probably just stuck with RTV. Tap around it it will pull off. It just holds the seal for the slip yoke on the DS so no press fit.