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I have sanded most of the paint off and took more pics. They can be seen at:

http://s1297.photobucket.com/user/Sho...ry/Transom

It looks like all of the cracks are originating from holes drilled thru the transom above & below the water line (drains & motor mounting holes). I assume the factory not the dealer would have drilled the holes. Is it possible they just did a crummy job of drilling / sealing these openings which then led to all of these cracks?

Short Circuit