Re: dusting off the mercruiser 888
dayday:
Have you discovered the "restoration" forum yet? lots of good info. there about checking stringers, transoms, etc. etc. the choice of whether to restore your boat if you find rot, is a personal choice about how much you want THIS boat, your ability and willingness to put time in. The point is that if you find the floor is rotted and transom bad, its 100% fixable. Lots of work, but it can be done. This does not mean you cant find a better condition boat for less money than you will put in to this one, but boats don't make economic sense anyway. B.O.A.T........break out another thousand!
get your serial numbers for your engine and outdrive up and we can get specific about repair on things. Have you gone to Adults only section as Bondo suggested? you'll see info on where to look for serial numbers.
How do you know the boat was not winterized when stored? If someone drained the block and manifolds 4 years ago it may still be fine. Maybe some photos of those quarter sized holes will help explain what they are about. I would like to see your outdrive pics also to see "what was trying to get out"
Have you tried to open the drain plugs on the block to see if water was in there?