I got a new lower unit from SEI and had to send it back to them 4 times.
It seized after 5 minutes in the water in a no wake zone, sent it back.
They repaired it and sent it back UPS, it was out of the box int eh back of the UPS truck smashed, sent it back.
Got another one back, broke it in over the recomended time frame, put the boat up for the winter. Changed the fluid in the spring only to find the unit had water in it. sent it back.
Go it back , they told me it was a bad housing and they would take all the guts and put it in another housing and guess what UPS smashed it again.
Decide to take a torch and hammer and bang out the dings, put it on and have about 50 hours on it now.
I will say that SEI was very good about replacing / repairing it and it has a 3 year unconditional warranty.
I'll keep you posted