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With your description of the condition of the lube, it sounds like you may have a leaky seal that is allowing water to get in & mix with the oil. It gets all whipped up like a milk shake! Check your seals very carefully & replace where needed.
There are 2 plugs, as you've noticed, in the gear case. When you drain the old oil, remove the bottom one first then the top one (allows air into the case). When filling the case, you actually must use the bottom hole.....use a pump or a squeeze bottle with a tapered nipple. Keep filling from the bottom hole, until the oil reaches the top hole. Insert the top plug (this will create an air-lock or vacuum) then quickly install the bottom plug. Although this method can be very messy, it will ensure there are no air bubbles inside the gear case that could happen if you were to fill from the top hole.
Drain & fill should be done at the beginning of every season, because it seems there is always a way for some water to mix with the lube. Also use a top grade OEM lube like Merc, OMC, etc.
Good luck & happy fishing!!
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2003 AC F5 (Jr's Dec 07 SOTM & 2008 SOTY)
2003 AC F7 EFI SP (April 06 SOTM)
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