Dean now I understand what you are saying however I believe the OPs drive was locked up internally which will cause the steering to torque over as he described. If it was locked in drive as you stated the engine would still start and the boat would immediately start moving.
With the drive having a broken gear and locked internally the engine will not be able to turn over as stated by the OP.
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1997 Silverton 362, 7.4 Crusaders
1997 2400 SCR, 5.7 Vortec / Bravo 2
Mike
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