Thanks Wayne, that's the kid of encouragement I need. I tend to be a bit apprehensive going into these projects, and it helps to be reminded to just start and proceed slowly.
Thanks guys for the reccomendations on drill bits. And the sources for the gudgeon. Bill, I appreciate the thoughts on a port on the transom, that's a nice back up option if removing the remaining bolt bits goes awry. I like the brass bolt idea as well. Anyone know what's on the inside of the transom? Is there a tapped aluminum or s.s. plate? Or nuts and washers?
I'll give an update when I get to this project. I still have Flight Risk to put to bed this weekend. Thanks all!

Dave