I am not sure about the transmission part of it. I would just take a look at all the motor, transmission, vdrive, underwater gear, etc... Basically anything metal on the boat I would see if it is pitting real bad. Even if he has a fresh water cooling kit on the boat they usually don't protect the exhaust manifolds so you may need to replace a lot more of the engine than just the short block. He mentioned to me that the trailer is showing signs of salt use. It may need to have the brake system and bearings all redone as well as being stripped down and repainted. Maybe check under the dash to see how the electrical connections are? I don't know how tige secured the deck to the hull but if there is a way to check the screws/rivets under the rubrail that might be a good idea.
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