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Dale
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    Well buddy here is my story.  I don’t know what a Merc400 is but our (me and my son) 1956 Mark55 had the same problem.  We took the transom clamps, the bigger pivot tube and the center section of the lower unit to a machine shop and they drilled and reamed them out to except the bigger pivot tube.  A lot of work for sure but in our case the motor was apart and we found out ahead enough to make things work.  http://www.fergusonpoolemarine.com/    Ferguson Pool might have the correct parts if you want to start over.  PM me if you want to see some pictures.

    dale