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transmision slipping

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Rcraig10132

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I have a 97 seadoo challenger and when I'm on the water it feels like the transmission slipping I have to slowly give it gas. But when it does grab it takes off but as soon as the boat plains off ontop of the water the RPM's go down to 4500 ,and I also have water coming in between the boot and the pto crank shaft that the impeller is on. is this my problem or do I need a new high altitude impeller. oh yea this boat is from FL. and is 5000ft up in Albuquerque now. I have re-jetted the carbs and the plugs are a golden brown so I know that's correct. and the water regulator is good I also removed the shims for this altitude. any help would be appreciated.
 
Cavitation that bad is normally the carbon seal. AND... since you are leaking water there... I would rebuild it.
 
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