Sanctuary , thanks a lot man. We have just gone through the whole interior, we pulled out all of the drawers, removed everything in the boat that was ruined, we literally pulled garbage bags of stuff out, worth thousands between nav equipment gps etc all ruined from being wet. A picture of your setup to your engine would be great. Our first plan of attack is going to be the bulkheads for sure. We have not decided whether to pull the whole bulkhead or remove the rotted sections and replace with marine ply and glass heavily. The good news is the volvo penta was replaced with a yanmar in the last 8 years and only has a few hours on it from the one cruise that the boat actually made. It is going to be a PITA to get to that engine though because like you said it is a pretty lousy setup. Everything else is in relatively good shape it is just going to take a lot of elbow grease.
There is a place here in town called sailorman that is all used and warehouse priced supplies, and one of us is getting a job at west marine...employee discount
as far as the boat being rock solid, that is totally true there is not a single soft spot or spider crack on the deck and it has been neglected for at least 5 years. I also feel that we have a good support system as we have a lot of close friends that are avid sailors and love doing this type of thing. I guess that's one of the perks of living in Fort Lauderdale where it's summer all year and there is someone around every corner with a lot of know how and connections.