Bettys,
Your story has a familiar ring to it. I just bought and installed a new Hurth ZF10M. It cost over $1K. It is bolted to a Universal M25 engine in my boat. I did not have as much clearance as you do, with only 2 inches. I was able to do the job with the boat in the water, but it was a big PITA! I removed hoses from the aft engine, pulled the heat exchanger, then unbolted motor mounts and lifted the engine and trans to gain enough clearance to pull the trans and bellhousing. The trans and bellhousing are bolted together from inside on my engine. Thereare a lot of bolts on the bellhousing, including one from the opposite side of all the others. I kept the front of the engine on its' motor mount and did not have to disconnect hoses or wiring at the front. I lifted it with a 4x4 beam across my companionway , a piece of chain around it, then a come-along puller to provide the lifting force. After lifting I supported the engine on 2x4 blocks while I muscled the trans & bellhousing out, then back in.
When all done, re-align engine & propshaft, if necessary (mine was). I will test it all on Friday.
First, though, you may try flushing your trans with some diesel
fuel.....run it at the dock, power up & shift it til warm, drain & replace with good Dexron II equivalent fluid. If you get lucky, that may help.
BTW, you know how to check the fluid in a ZF Hurth, right? Do not screw the dipstick in while checking the level. Use the correct fluid.
What can go wrong, internal clutches and the mechanism that presses the clutches together. See Nigel Calder's "Boatowner Mechanical & Electrical Repair Manual," 3rd Ed. It has a good explanation. My local library has it, or it is a good one to buy.
Good luck!