Ian, the thing that makes the water move in the water pump is the impeller, not the propeller. But yes, the bronze facing can pit and leak around the shaft. That happened to my 11B. Any decent machine shop can take care of it. On the gearbox, how did second gear feel? Did it move fore-and-aft at all? The fore-and-aft movement shouldn’t be more than .005″ and there should be no ‘rocking” on the shaft. I’ve repaired gearboxes with this happening and in all cases they would grind going into second. Set the second gear end float correctly and you can just throw it into second from first without doing the third gear dip. I’ve got to say, you’re cleaning and painting looks amazing!