"A bigger problem is that the
"A bigger problem is that the OMC stringer drives coupled thrust to the hull by being bolted to the boat's stringers. The transom is often built just like the sides of the boat, as it doesn't bear any thrust or weight load.
A Mercruiser transfers the propeller thrust and engine weight through the transom plate. This means that a reinforced transom is a requirement. It can be a lot of work to beef up the transom. In any event, the transom opening for the OMC is much larger than you need. This would need to be reinforced and glassed up strong enough to take the load that would be placed upon it.
As for the 307....I don't know. I suspect your best bet would be to find a complete engine/drive assembly from a junk boat and install it.
If the OMC drive is working properly, you are further ahead to run it. Most parts that require routine service are still available. Some components are getting pretty rare though. Thankfully, these parts don't break much, otherwise someone would be making a buck by selling them."