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I know it may sound stupid, but are you sure it's the Paragon, and not something else? There are plenty of other things on a marine engine/transmission that will squeel, including but not limited to: rubber impeller, drive belts for the water pump and alternator circuits, shaft log. I have even heard some squeeling coming from the passenger seat, mostly on smaller fast boats.
Good luck, hope you are able to resolve this quickly and efficiently,
P
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