With no intentions of insulting your intelligence.... you do not understand any portion of that lower unit's shifting setup. The pinion gear is held on to the drive-shaft by a specifically torqued nut. There is no reason to remove the drive-shaft if all you want to do is to remove that seal & bearing housing... simply use two screwdrivers to wiggle/pry it out of there.

The default shift position of your lower unit is to be in forward gear.

That allen screw holds the pinion bearing is place. If you broke it loose... remove it, clean all threads with lacquer thinner or acetone, apply loc-tite to the threads and then thread the allen screw in until it is flush and let it sit overnight.

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(Hydro Electric Shift System Explained)
(J. Reeves)

NOTE 1 -The ohm reading of the individual shift solenoids should be between 5 to 6 ohms. The ohm meter should be set to low ohms. The shift wires leading to the solenoids must be disconnected when being tested.

NOTE 2 - The solenoid plunger measurement must be made with the solenoid placed within the lower unit. The measurement must be approximately 1/64" beneath the top surface of the solenoid... NOT above the solenoid surface nor any lower than 1/64" of the solenoid surface. This factory measurement is critical and will not ever change UNLESS someone has tinkered with it.

The shifting setup of the lower unit is what's called a "Hydro Electric Shift", which is quite complex consisting of voltage being applied to solenoids in the lower unit which in turn change oil passages via a oil pump that supplies various pressure on a spring loaded shifter dog. The wires leading to the lower unit (at the powerhead) are "Green" and "Blue". The engine must be running or cranking over in order to shift out of forward gear.

You CAN NOT use HI VIS lube in that lower unit. You MUST USE what OMC calls "Premium Blend" lube, commonly called "Type C". (A thinner lube)

Note: The engine must be running OR have the driveshaft turning by some other means in order for the engine to shift.

In neutral, you need 12v to the "Green" wire.
In reverse, you need 12v to both wires, the "Green" one and the "Blue" one.
In forward, there should be no voltage to either wire. (The spring loaded shifter dog forces the unit into forward gear)

To check the lower unit for proper shifting to make sure you have no trouble there, remove the spark plugs to avoid problems and to allow a higher cranking speed.

This next step eliminates the actual shift switch in case problems may exist there.... Disconnect the blue & green wires at the knife connectors (the rubber insulated boots) leading to the lower unit at the powerhead, then using jumpers, take voltage direct from the starter solenoid to apply voltage to the "Green" wire for neutral, then both wires 'Green" & "Blue" for reverse (Remember the engine must be cranking over in order to shift).

With no voltage applied, the unit should be in forward. No need for a ground jumper... the lower unit's already grounded. You may crank the engine with the key switch or by energizing the starter solenoid with a jumper wire.

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No offense taken, thanks for the help. So far, I am brand new to boat motors. Which I did start to learn the solenoids while first learning the manual shift cable had no place to hook up to the outboard. Lol I was able to learn the gears from online and another forum. Turns out, I think what I have taken apart now should get new o-rings and sealer around the set screw. I think I would hear metal bouncing around if I nedded to pull a housing to get to the bolt for pulling the drive shaft. Hopefully o-rings and that set screw seal will hold pressure. Thank you for the pointers! Some people like forums for hobby and not paying $200.00 to replace 4 bolts o-rings. Lol

I've decided I will go in through by the prop to remove the driveshaft and see if any shims or anything are holding the driveshaft for support. Any recomendations for the least expensive method or tool to pull the part before seeing gears? The seal kit seems about $40.00 depending couple dollars from different stores. I'm not a big fan of two different shipping costs. I got the drive shaft WD-40'd and cleaned dried grease. If an extra $20.00 for a shim maybe, but need to get in. I'm not a pro, but the impeller plate maybe uneven wear and I think cleaning everything in and out will give a better look and workability. A thrust washer seems included in most prop boxes.

I've read your post over a few times and I'm not sure of exactly what your problem is or what you're asking for help with.

If that lower unit is shifting properly and is not leaking... I suggest you leave it alone.

I went to check the gear oil and a little water came out (~1ounce) followed by metal rich sludge 24 hours later. The set screw was half out with no seal tape or loc-tite. The drain plugs had no washers and what appears some rubber wear at the drive shaft. The impeller plate looks like the drive shaft might have been leaning one way. It looks like the hole is not a circle to me. I'm asking how to get the carrier out after the four bolts are removed? A lower seal kit comes with oil seals, but why wrestle with a drill bit or puller when taking out the carrier and loosening a 7/8" nut makes it so I can replace the o-rings that come in the kit too. Then I'm not prying at a upper oil seal housing with 2 screwdrivers. Removing the carrier would allow a look inside and clean at least, but why would I order twice instead of once and pay shipping twice instead of once?

I'd rather go over the motor really good to see the down the road big dollar parts needed. The upper oil seal housing piece is recessed though.

My only current question would be the best way to get the carrier out after the 4 bolts that had rotted o-rings is off?

I picked up a 8" puller. I appologize if the questions seem redundant or inexperienced, but this is what I was doing. I wrapped a ratchet strap around the carrier and puller since I had nothing in the garage, but maybe wire after the fact, lol. Now I can get at parts to get to the 7/8" nut. The shafts are a mess (dirty) and any cleaning for seals to work better.

So far it looks like 4 seals and $2.00 or less parts (o-rings, etc.), WD-40 and a rag to clean stuff. I might be able to stay within a $100.00 for my next deposit.

Okay... It looks like you're well on your way to handle that re-seal job. Wish you luck.