Just FYI, I own the 1965 outlaw in Seattle. Im still looking to sell it, but its not really a great market for selling sailboats.
I also have water collecting in the compartment under the outboard well. I put in two access hatches to let it breathe when it wasn't in use, but that didn't solve it. Now I've drilled a hole in the bulkhead in the very bottom to allow the water in that compartment to drain out into the compartment under the **** pit. Once it drys out, Im going to pour in some epoxy to make sure all the nooks and crannys are filled in so water will stop collecting back there. If I dont do anything about it, I'll have to replace that bulkhead. Something I dont want to do.
Curious for a friend, if you still have the boat?
Also, the guy looking for inboard installation information, well, I've yet to see one installed in an Outlaw, but have considered the challenges and advantages or disadvantages of doing so. I like the ultra-simple aspect to the boat as is, and the inboard would definitely alter that appeal. Then again, were it an outstanding installation with a great engine, well, who could argue... that is unless one were paying to have the work performed.