I have a '95 that I installed a new honda on last year. The shaft had a lot of play and vibration at the prop so I replaced the shaft, seals, bushing. I reamed the bushing with a reamer so the shaft would slide freely into the bushing. There is a tiny bit of play now. After pumping it full of grease today and the first startup the vibration is gone but the lower bushing gets scorching hot. My question is do I dare ream the bushing more? I'm afraid if i ream it anymore I'll get the vibration back.
Any thoughts??? Thanks.

sounds like seals are bad... is the grease cup full? You shouldnt have to ream the bushings, sounds like grease isnt getting to the bushing... did you tape the threads before sliding the seals on?

According to GD, you have to ream the bushing. After I installed the new bushing the shaft wouldn't even come close to going into the bushing. After reaming it a few more thousandths the heat was "normal" meaning I could bare hand it on the bushing after running it for 5 minutes out of the water. I did notice a slight increase in vibration, but nothing like prior to the new bushing. I'm hoping its problem solved.

You are correct you have to ream it. As long as you have grease everywhere I would just run it. I'm assuming it is getting hot while running out of the water. While running that bushing will be under water anyhow so shouldn't get too hot.

Does the new bushing have the channel(s) in it to allow grease to flow the length of the bushing?

I just got new bushings and mine have a spiral groove cut in it.

Did you use some type of silicone on the threads when you screwed the lower seal housing on? Sometimes that will get into the groove on the backside of the bushing not allowing grease to circulate. I doubt that's really the issue, but you never know. How hot is hot? Don't forget it's just a bushing so it will get hot when running it in the yard. The water is going to cool it off.

GD will tell you that if its too hot to touch then you haven't reamed the bushing enough. It's brass. It shrinks when you put it in the frame. The lower bushing should have a small channel it it (spiraled on the inside) to let grease into it. You do want a little bit of play in the shaft

The new bushing has the groove in it. I reamed it a few more thousandths and it runs much cooler out of water. Before it would boil the grease and was untouchable after running only a few minutes at half throttle. . I've put a few hours on it in the water and I have had no issues. Thanks for the input from everyone.