I have the Vire 7 engine.
 
  Does the engine have to be removed to replace the cutlass bearing?

  Does the engine have to be removed to replace the shaft seal packing?

No need to pull the engine to replace the cutlass bearing, remove the set screws from the coupling and slide the prop shaft out, remove the set acrews on the strut that hold the bearing in place, here you will need some sort of puller to remove the cutlass bearing, a threaded rod some heavy washers the same OD as the bearing and a large socket that has a larger ID than the bearing and you should be able to crank it out, you can use the same procedur in reverse to install. Putting the bearing in the frezzer for a few hours to shrink it will help.
You will also need a lot of penatrating oil an perhaps some heat to help in the removal.

When repacking in the stuffing box make sure you have the right size I think it would be 3/16 or 1/4 inch square. West Marine make a nice packing puller for about $8.00 to make the jod easier they also sells two types of packing.
 When fitting the packing, cut the ends at a 45 degree angle.
Do not over tighten the packing nut. the gland should not leak at rest, however a small drip when running is not uncommon. you will periodicly need to retighten the nut.

Thanks. 

 My engine has  set idle for seven years. It turns over and makes compression. It has no spark. I think I will pull the engine to work on it. I suspect the points will need to be filed and/or the magneto will require cleaning.