I had this exact thing happen to me on that exact motor. 350 MAG MPI?
If so, check out my thread on it:
http://www.smwebhead.com/phpBB3/viewtopic.php?f=11&t=6071Bad news: you've got to replace the entire seawater pump and it is not covered under any factory or extended warranty because it is considered a "wear/maintenance item."
Change the impeller while you're in there if you haven't done it. Here's my thread on that as well:
http://www.smwebhead.com/phpBB3/viewtopic.php?f=11&t=6071Good luck!
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Paul
2007 Four Winns Horizon 220Mercruiser 350 Mag MPI w/ Bravo III Drive
2004 Ford Explorer Limited (V8-AWD)
Pomme de Terre Lake (Southwest Missouri)