My boat only had about 250 hours. Shaft was straight, but the transmission was slightly shifted, pushing the shaft to the wrong position. It isn't completely centered vertically, like yours, but is perfect horizontal. I don't know where it was connecting, but like you we had 3-5 gallons at the end of the day. I was really freaked out later in the season when we were seeing a lot of water again, but discovered a leak in one of the ballast bag fittings. Oh well.