Welcome to CSR.
Did you try disconnecting one of the shift cables at the engine to narrow down where the problem is?
Is the throttle and shift in a single or dual control configuration?

 

I'm not sure I understand what you mean by "nor can I move the upper s.s. by hand". What is s.s.?

As mentioned previously, you'll need to remove the shift cable from the shift plate on the port engine. It's only held on by a couple of locknuts and a cotter pin. There will be three cables, the lower unit shift cable is the cable that comes from down low behind the engine. Once removed you should be able to easily push and pull the cable, which will move what you have taken a photo of. If it doesn't, a new shift cable may be in order.

While you may have made the mistake of removing the port drive with the throttle in forward gear, I would think the only real harm would come from not being able to remove the drive. But you made it past that.

I do wonder, why did you remove the drive in the first place? Was it because of this shift issue?

Tom

 

I'm going to look for something wrong there. Throttles and drives are controlled by the same shifter

 

Good luck! The shift shaft should move if you move the shifter, of course, in about a 30 degree arc if I recall. If you disconnect that cable, you can at least figure if the problem is the shift cable going down to the sterndrive, or the cable going up to the shifter itself.

 

Im going with a lower shift cable, i had to replace mine every year till i figured out why. First was run in a loop in the engine room. It rubbed against the steering rod and right through the outer cable. Next was it was not secured properly and rubbed on the hub and again right through the outer cable. Finally got it all figured out and good. Does not take much to kill these cables. It should flow like butter

 

It looks like mine goes in a loop also. Thanks for the info

 

It is supposed to loop, just make sure its not rubbing on anything. Also have someone trim drive uo and down as you look at cable low, it could rub on the hub