Re: Big Queston
Kelly--
i'm with Jas on this. try it and see before assuming the worst. if it turns over OK by hand, pop the valve cover and shoot some oil over valvetrain, a lttle WD down cylinders and try to fire er up. if you can get it running, let it heat up and cool down a couple of times, then run comp test.
if it's not usable, i might think hard about going with a far newer donor boat rather than rebuilding. look at whether you can find ALL needed parts for the 67 before you pour any $ into it....you only need one critical part to be NLA to totally screw you. this is what i found with my '64 120hp drivetrain. parts for the old Mercruiser 1 outdrive are also getting to be an issue.
this same basic drivetrain has been put into a jillion disposable 16-18' fubarglass ski boats right up to current year, and many of those have trashed interior and soft floors and can thus be had for a pittance (my donor boat cost me 650, incl a trailer which i'll make into a flatbed...this got me a 1993-vintage fresh-water-only motor with 600 hrs on it (and 20 more hp from same motor) and an Alpha 1 outdrive). now parts are pretty easy to find, and i can use a modern prop like a Piranha or Comprop. Try a "let me turn your old boat into ca$h" ad on CL....took me 1 day to find one.
the outboard-conversion option is also a good one (there, EZ, happy now?

) if you can weld aluminum or have a friend who can.....those outboard-mount flotation boxes are nice but will cost more than you have in boat otherwise if you have to buy one premade. and then there's the cost of the OB itself.....cheap if you're OK with a 2 stroke, horrendous if you want a 4 stroke. if i could afford to drop $10-15K+ on a repower, this is route i'd go.