From what I can see in the picture it looks like the water tube from the upper housing broke off at the base. It appears that the previous time the drive was separated and reinstalled it was forced on damaging the tube and guide tube which is shown crushed in the middle. If I recall the upper tube has a flange and four bolts that attach it to the upper housing so it can be replaced.
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1997 Silverton 362, 7.4 Crusaders
1997 2400 SCR, 5.7 Vortec / Bravo 2
Mike
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