I don't have much experience with waterlogged foam but I can see how it can be problematic.
That being said I feel very safe in a friends old BW Revenge because of the added flotation. My Seafari has foam between the 2 outer stringers and in the cavity under the gunwales, and I like that. Might help you turtle a while in the event of the tiny ship being tossed
. The bilge is open -- nothing to hold moisture or corrode the tank. I may replace that foam someday as it does feel dry and subject to saturation.
The link below is where I've been buying excellent epoxy and guy's prices on foam are very reasonable, too.
http://www.jgreer.com/Foam%20Page.htm
Good luck with the project.
