2004 8hp leaking oil from water intake

[mgamble]

New here with a question on a new-to-me 8hp 2 stroke:

Noticed today in the driveway the motor was leaking a small amount of oil onto the driveway. The leak was dripping out of the water intake (see photo). Researching it sounds like it could be the driveshaft seal or possibly just used oil making its way out the motor. The motor hasn't been run in a few weeks and has been left in the "down" position since last week.

Also, the oily grunge between the gearcase and lower unit seen in the photo: anything to worry about?

Thanks in advance!

(edit: not sure why the photo uploaded sideways.)

[Joe Reeves]

If that leakage looks different from the actual gearlube, what you're seeing is just the unburnt fuel/oil dripping down the inside of the soot laden exhaust tube between the powerhead and the lower unit.

If it is actually gearlube, I would suspect that the driveshaft seal under the water pump has failed.