I am not a marine engineer but my guess is that a 12HP diesel would be fine in nice weather. I would want more HP for a 32' boat in any kind of snotty wind or seaway though. That said, the A4 is rated at 30 HP but probably delivers more like an effective 20+ HP.
I am with jaschrumpf on this. A4's need a bit of TLC and chances are there are some simple maintenance tasks you should do after 2 years of ownership. Tell us more about what the symptoms are and how you have been maintaining your engine.
Definitely stop in over at the Moyer forums as well. There are a lot of A4 owners who know their engines quite well and do most if not all of their maintenance themselves (saving some boat bucks at the same time).
"The cure for anything is salt water~ sweat, tears, or the sea." ~Isak Denesen
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