My original outdrive on my Z must have been left up, filled with rain or snow, froze, and cracked a 3" split alongside the reverse bearing carrier. I thought about welding mine, but taking measurements indicates that the lower gearcase has been deformed. I may still weld mine up, I need to check some clearances closer. As for your drive, it appears to also been caused by water freezing, and likely if water got in the oil, even more damage could be present. Two ideas come to mind. Fully dissamble the lower half, figure out what is good/bad, asses the direction you need to proceed, then weld up the crack, reaasemble. 2nd idea would be to drain the lube, clean out the cracked area with acetone, carb cleaner, or brakekleen, the use JB weld to seal the crack. I know its not the best method, but if the bearings and/or gears are bad, and the housing is cracked, your likely looking at a new unit anyway. Best price Ive seen on a empty bottom half was $550.00(OEM, not aftermarket). Could give ya some time, outdrives can be easier and cheaper come fall after season. Best of luck, Michael.