Re: transom suggestions
Low budget and boats doesn't mix.. As for being frugal with materials, yes that is possible.
1st get some materials the cheap way, there are people on eBay that sell scraps of fiberglass materials from the ends of rolls very reasonable. One person I have worked with is:
http://stores.ebay.com/Tordoff-Supply
Getting your transom to fit the hull tightly is important. If there are ANY gaps between the hull and transom these need to be filled. Also fillets between the transom and hull sides and bottom do tremendous to transfer the loads. remember that our OB is pushing on this board we call the transom and that board needs to transfer that force to the hull and the stringers.. Some mat and resin between the transom and the hull's outer skin is not going to transfer the loads..
Start reading here and you'll get kind of an idea of what I did, not that I do this all of the time..
http://www.shareaproject.com/pages/imageDetail,p,148,i,3280,00.html
Also, when you say mesh, you're not talking about fiberglass mesh drywall tape are you?