If the recall was done, the cable is definitely red. Don't assume that just because the recall was done that your problem is not the cable. Mine had been previously done but the cable was indeed bad again. The shift cable should have 2.5 lbs of drag when connected to the bell crank at the drive end (outdrive off) but disconnected from the carb side. The bell crank needs to be at exactly 90 degrees. Make sure to grease the bell crank bushing and shaft before reinstalling. If the 2.5 lbs can not be achieved, loosen the retainer on the cable and push the bell crank slightly into the housing, then tighten the retainer. Retest. If the bell crank cavity was full of water/crap/etc, your outdrive seal was leaking and your shift cable should be replaced.
When I had an OMC drive my lower shift cable was the major cause of my troubles. Make sure it is routed cleanly before it exits the transom. Make sure your idle is around 600 rpm when not in gear. If it can't idle that low, check your timing and carb settings. If your ESA switches don't work when activated by hand, your ESA box is probably shot (mine was as well). Ebasicpower had the best price on ESA boxes last time I checked.
Doug
Edit: Where do you live Mike? Anywhere close to Philadelphia, PA? I could give you a hand if you are close by.