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The mercs do “clunk” when shifting normally. Clunking is one thing, but is it “chattering” when shifting into either/both gears? Chattering indicates incomplete/partial engagement and spells trouble. Did you have this engine running with that prop before replacing the seals? If so, how did it clunk prior to servicing?
“Cornhead grease” in this Merc’s lower unit?? I’m not a merc guy, but I wouldn’t use that grease in the gearcase, I would use the usual gear oil that Merc prescribes? You just replaced the seals so leakage shouldn’t be an issue. I will let the Merc guys pass judgement on this…
Again, one “clunk” is normal and OK, chattering spells trouble.