Jackie: Thanks for Erics info, I work in Homer so will definitely be contacting him. And I have been following your story, keep up the good work. It will be worth it in the end, at least thats what I am telling myself.
SoBelle: I am in the process of plugging all the little holes/rub rail/teak top rail etc, so as to keep the water out. Perhaps I should have named her "Swiss cheese"
Thataway: Thanks for the expert advice. I Knew I was at right place for this project.
C-Val: I haven't made any cuts into the floor yet but 1 or 2 days after a rain, water seeps up from the floor just inside the door. appears to have had some repairs done there previously. Assuming the worst and hoping for the best. Transom seems solid/dry at least from the material that came out when I was installing transducer.
Jack: Hopefully my "rebuild" wont be near that much money- divorce for sure. I just may swing by sometime as I am just south of MM 130. You have probably seen "her" in front of my garage.
San J. :Sorry I wasn't more clear in my original post. That IS what I was referring to, "Pink Panther" type for home construction that you get at Home Depot / Lowes. The type they use for under slab, below-grade walls. I believe its called Extruded polystyrene. If its designed to go below grade I assume its fairly water proof, thus preventing it from rotting should water ever find its way into my sub-floor. And to Bobs point, I was going to make necessary relief cuts/kerfs to conform to hull curves.
Again, thanks All. Will keep you posted and pics to follow.