Yellow oil, blown head gasket?

[Shastasoda]

Hey guys, thanks for the add.
Here is my issue.
I was cruising along today. And my trans disengaged and my engine raced for a split sec.
As i throttled down, the trans caught again and i was moving along. It slipped one more time, i lowered the throttle and cruised back to shore.
What is causing the disengaging of the prop? Seal?
Also, she never overheated, but the oil is yellow cream colored and there is oil in the bilge.. Not alot, but its there..
Blown head?
Cracked block?
Head Gasket?
Thanks in advance folks!!!!

 

[gordmac]

Is the transmission oil level low? Is the oil in the bilge engine or gearbox? Is the discoloured oil engine or box?
If you have issues with the engine I suspect they are not what caused the transmission slip. Maybe the other way round?