First there is no real neutral or reverse in the direct drive. The "detent" only locks the trans in forward. To use reverse pressure needs to be applied to the shifter to hold in reverse as there is no means for the trans to hold itself in "reverse". Now neutral is sort of in between however t due to the friction of the mechanism the trans can and usually does spin a bit when in the neutral range of shifter position. Depending on how the trans is adjusted there can be a little or a lot of drag in the neutral range.
How does the shift cable look and does it move smoothly? Any rust or wires poking out of the sleeve?
When the engine is idling in neutral is the shaft turning at all?
You could put a mask on and stick your head under water and take a look or wait for a diver.
Dave Neptune
