Honda 2.3 air-cooled, shaft confusion

The 2 bolts that attach the prop gearbox to the shaft were removed, and the units simply separated. The shaft wasn't constrained at either the upper or lower ends, and 'slots' in & out of either end IIRC.
It required no engineering skill in either disassembly or re-assembly, just a spanner really, however as you'd know, getting the elongated shaft perfect is critical, and way beyond my skills level!
There was an e-ring holding the shaft to the lower assembly, but I popped it off easy enough. I have the shaft out separated from the extension case. What's the "water pipe" for in the extension case? What did you do with it when you added another extension case? The manual also says to add a hole for the "oil pipe hole" in L models only, so if I were to shorten it, think I should get a new bushing, but don't make the "oil pipe hole"?
 

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I'm afraid that I don't recall these details. As far as I can recall though, the part that I received was the 'Extension separator', and the 2 hex bolts, which were an entirely simple 'join'.
Apologies if this isn't of any help.
 
There was an e-ring holding the shaft to the lower assembly, but I popped it off easy enough. I have the shaft out separated from the extension case. What's the "water pipe" for in the extension case? What did you do with it when you added another extension case? The manual also says to add a hole for the "oil pipe hole" in L models only, so if I were to shorten it, think I should get a new bushing, but don't make the "oil pipe hole"?
The pipe is a vent so the water drains easier out of the extension piece
 
The pipe is a vent so the water drains easier out of the extension piece

Think I could've just left the long shaft bushing with the hole then?

I did the short shaft conversion, ran around for an hour and it didnt blow up so far. Some hiccups along the way. The dowel pins that align all the screw holes were rusted to the frame. Required blow torch, luck and a hammer. Removing the old bushing was a PITA, but I replaced with short shaft bushing just in case.
 
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