17' Aquasport with a leak - drain plug

[Far67rar]

I have a 1984 17' Aquasport that I keep in the water. It has been in the water for 7 years now coming out every two years for a new coat of bottom paint. Recently I noticed that the boat was taking on water. I pulled the boat out of the water and filled it with water to find the leak. What I found was a small hole about an 1/8 inch that had been drilled in the transom more than likely from the original owner to install a depth finder. Here is my problem the hole does not go all the way through the transom, so the water must be coming in the hole I found traveling through the wood and out another hole on the inside of the transom. I also noticed that the drain plug housing moves a little bit when i take the drain plug in and out. My question is how do repair the hole, (Marine tex, fiberglass, silicone) and is the plug housing moving a big problem. I do not want to get into major transom repair. I would rather use the boat than work on it.

[dbiscayne]

Yep the drain housing moving is a problem.  If the transom is still solid you can probably do some spot repairs and be fine.
Get the housing out of the transom, and drill the other leaking hole a little, let it dry out as long as you can put some fans & work lights on it to help.
Then inject something like 'Git Rot' into the leakng hole you mentioned, bet it'll find its way to the drain hole.
If the wood around the drain hole is still soft & mushed up I'd overdrill it to get to good wood, then use a piece of thick walled PVC pipe the right diameter for a drain plug and glue it in w/ epoxy.  Theres some posts somewhere here showing the same thing.

[Capt. Bob]

Here's a start.
http://classicaquasport.com/smf/index.php?topic=7598.0