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Mike - just to add to what CS is saying... When I had a ster drive with an Alpha One (you might have a newer Alpha 2), if I remember, the bottom drain plug was magenetic and would pick up metal filings if things were wearing. A little bit might happen but if there is a lot... Also if it's not metal when you drain the gear oil you can run a magnet through the container you drained into and see if it picks up a lot.
BUY A SERVICE MANUAL FOR AN ALHPA WHATEVER YOU HAVE - even if it's just a Clymer's Manual - cost 20-30 bucks but is a must for you - has all of this info in it. RTFM - Read The (insert almost any F word here) Manual...
Milky gear oil is bad. Propper gear oil I think is 80-90 weight and should be a dark brown but somewhat translucent oil. Shouldn't be flat anything if I remember right. Also, there is no resevoir to hold this fluid - it's all in the gearcase. If you are comparing the color to a tank inside your boat, that's your outdrive's tilt and trim tank. A different hydraulic system for the outdrive and not to be confused with lower unit oil.
Best thing to do is to change the fluid. Drain ALL of the fluid into a container and check with a magnet. Get a new washer for the drain plug ready before refilling, with the overflow hole open and using a stern drive filler pump ($20 that you'll be happy you spent) refill the the lower unit from the drain plug until it flows out of the top hole (there are three holes total, drain and 2 weeps if I remember - it's in the manual) then with the pump still in the drain plug and without spilling any oil, get the drain plug with NEW WASHER, up against hole and quickly place in - in place of pump - and screw tight. Read the instructions on how to do first... Run it for a couple trips and drain again to check for milkyness in the oil - might take a couplke checks but it's a good practice and won't take lnog once you've done it a couple times...
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