TOPIC: Lower unit trouble, '74 Merc 650

I am having the sinking feeling like I screwed up bad. The 650 was having shifting problems last night for the first time ever. It wouldn't go into reverse. I thought no big, let's test it in forward and see if it will reset. It didn't and on the test there was a crunching sound and the motor died. It would restart, but under any power it would just die. I managed to limp into Camp Cowles, our local Boy Scout camp and bummed a ride home. I went and rescued with our barge.
I opened up the drain and was faced with a teaspoon of lower end fluid. There was no water. I think I must have forgotten to put fluid in in the spring, that is all I can figure...
Can the lower end fluid just drain out? What kind of damage did I do and what kind of repair am I looking at?
Thanks Boys, feeling a little dumb right now.
Thom

Did you remove both plugs (top one, as well)? If you dont open the top plug it will not drain out.

yes, both plugs out

If you ran it dry and you heard crunching, you at least ate up the reverse gear. If things are really bad, and it got hot, you may have eaten/scored all the bearings and thrust washers, the oil pump gears and housing, and so on. Hope that is not the case, but will take a total tear-down of the lower unit to find out.

Start looking for a good used one. I think the merc 500's were the same.

I need a Doctor!!! Doc FrankenMerc will have one...

Well,...I do have a "few"
doc