Re: Any Advice?????
Deffiently going to need replacing.
The cap, Remove the rub rail. Under the rub rail are usally rivets. Drill them out with a SLIGHTLY larger drill bit. Once all the rivets are drilled out, just pull the cap off.
I have no experience removing the I/O's, so no help there.
The new wood. Depending on how much you want to spend, you have some options.
Most people here use two sheets of 3/4" exterior grade plywood. They seal it with epoxy resin and use PL Premium to adhere it to the transom skin.
If you want to spend a little more on wood, and want to skip the epoxy resin, use 3/4" Pressure Treated Plywood. I think this is a good way to go, although it does not seem to be a very popular idea here on iboats. Follow the link for a current disscussion on PT plywood vs marine plywood and exterior grade plywood.
http://forums.iboats.com/showthread.php?t=440262
The 3rd option is the marine plywood, but most people don't want to spend that kind of cash on the stuff cause it is very spendy ($60-$80) a sheet.
Hope this is helpful