Only bottom half of propellor is in the water. Hub and top half of prop are above water. So each prop blade pierces the water surface each revolution. Benefits are much less drag, and a nice rooster tail
I remember having tried to put down a few words down on this subject ... so try this link....
<A target="_blank" HREF=http://www.ybw.com/cgi-bin/forums/showthreaded.pl?Cat=&Board=mby&Number=264094&page=&view=&sb=&o=&vc=1#Post264094>http://www.ybw.com/cgi-bin/forums/showthreaded.pl?Cat=&Board=mby&Number=264094&page=&view=&sb=&o=&vc=1#Post264094</A> , which is a discussion on the subject with some explanations ... could go into more details, but all depends upon how much information you want...
Sealine have 2 boats with surface drives, the new C39 (which they are an option on) or their S42, which is the same as their S41/43, but with the above mentioned drives;efficiency is much greater than the standard drive, just have to take a look at the baia 48 to know that (1.4mpg at 30kts!)