G'day Mick
My prop shaft failed from long term fatigue due to bad alignment. I replaced it while the boat was in the pen. It sounds like the thread on yours is probably stripped and the shaft will need replacing.
I also thought I would have to drop the rudder to get the prop off and shaft out. I thought of just tying lots of rope to the rudder in various ways so that I could just drop it literally to the bottom and haul it back up later but found an easier way.
Before I started this project I went to be Coles self checkout and asked for about 30 shopping bags...
First thing was to tie rope around prop and tie off to the boat so you don't lose it. take off the prop nut and slide prop back till it touches the rudder and just about to drop off shaft.With a large piece of wood across the companion way, I used the main sheet block and tackle attached to the lifting ring on the engine, I uncoupled the prop shaft, undid the engine mounts and lifted the engine enough ( about 4-5 inches) to slide the prop shaft forward. You need someone in the water as you do this. the prop will hang on the rope as the shaft slides forward and as it does, stuff in the shopping bags. About 2-3 for now will completely stop the water. Pull the shaft out completely and stuff bags in from the inside till it stops dripping. They work so well. I then dropped the engine back on its mounts and stuffed about 4-5 more bags in to make sure.
Just did the reverse with the new shaft. Got the alignment perfect and I swear no more than a litre of water in the boat. I relied on the bags for the 3 days it took to turn the shaft for me.
Put the collar back on the new shaft in the same place as the old. Don't even worry about taking all the bags out when you put the new shaft in just in case you get stalled. Leave the original 1-2 in the tube as backup. Just push the new shaft in until the collar touches the prop shaft seal. The bags will push out the back. Have someone catch them as they do. Put on the new prop, tighten and pin the nut.
Whole job, $250 for the new shaft cos Coles gave me the bags!
Don't forget to take the prop in to get taper right.
Cheers
ps all this 3 days before Christmas so it was shopping bags or no sailing until march when I could be lifted out...