Kad32 removal. Remove outdrive?

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As per title. Does outdrive need to come off for engine removal with DPS drive? Never done it with this drive attached before.

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Sorry just saw that you said DPS drive, All the ones I have seen on a KAD 32 are DP 290 drives, but if that is what you have then Volvopaul is correct although I have removed Mercruiser engines before without taking off the drive which is a similar setup.
If its not a DPS but a normal DP 290 then yes you can just undo the bolts around the flywheel housing and move the engine forward then up. There are a couple of tricky bolts at the bottom and one behind the exhaust downpipe which you won't get out as it hits the pipe but if you unscrew it as you move the engine forward and inch you will clear the threads, I have done this way several times and its straight forward. The shaft Volvopaul mentions only goes into the damper plate about and 30mm, I have done this type of removal on the 6 cylinder engines single handedly so if you have help it will be no problem. Just make sure the splines line up on refitting, easily checked as if you put the drive in gear and try to turn the prop it should lock up in one direction and be free in the other, then you know its engaged in the damper.
 
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