the motor still runs ,but will not raise or lower,l do believe water ha gotten inside because after undoing a line, a''milky,bubbly'' fluid came out that looked nothing like the new oil. How do l fix this?

u have aerated the oil its more likely that the level is low in the pump. there is a filler bolt to remove. fill with oil to the top put the bolt back hand tight. work trim -tilt 2 or 3 times lower motor down & level sit for 3 hours lets air pop out of oil then check level again refill. tilt & lower again u may have to do this three or four times to remove all air from system.. next problem is to find leak hopefully no major damage was done to the pump . ps try a mirror & torch to see oil level

there is a plug in the bottom of ours, of course its a merc, trim it up and pull the plug then push the motor down until all the fluid is gone. if water (the milky fluid) got in there chances are you have a bad seal, take it to the dealer and have them work on it