Hi Ian,
Just some ides:
Even though I added tansom reinforcement on my 66 Sportsman 16 sterndrive there are structual similarities with the Sweet/Sport 16 outboard models.
I did all my add-on plywood work on the inside of the transom, as your can see in the attachment.
(many more "Before and After" photos can be viewed by scolling to the bottom of:
http://hhscott.com/evinrude/chevy_v8.htm
The plywood is more protected on the inside. Also, you should consider bracking the transom at the "lift/eye" points, and consider tying them into the underfloor sringers which stradle the outsides of the bilge well on my boat. Another way of locating the stringer points is they are located under the engine mounting pads which I added in the "after" photos.
You could use steel or lumber to make these structual floor stringer-to-transom braces.
Good luck and keep us informed!
Lee Shuster
Salt Lake City
http://hhscott.com/evinrude
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