Thanks guys. To add a little information - I just got this boat last week. I am NOT very knowledgeable about marine applications, but I am very familiar with GM auto mechanics and am not afraid to figure stuff out. I traded for the entire boat with a clean title for something I bought for $89.00 (winning!!)
I get it... replacing the block is the correct way to ultimately fix this problem. Cast iron is no bueno to weld. The guy I got it from clearly had it break off once, not sure why exactly, but probably for one of the above mentioned reasons (Hydro lock / loose starter). He had the issue welded. The weld repair he had done cracked off at the welds (who knows how long it lasted). I think that's the point he gave up. Since I didn't know the owner and picked it up on a toss of the dice, I decided to prove to myself that the motor wasn't locked up today. I pulled the plugs, loosened the belts, put a wrench on the harmonic balancer and turned the motor over no problem.
I've convinced myself that if I fix the starter issue I will have this thing running. I know it's not the technically correct way, but I'd like to try the fix the gentleman above implored and see how long it lasts. In the meantime I'll try to find another 4.3. The lakes I'll be using it on here in Dallas are tiny.
Since I am not familiar with a lot of what I am looking at, would it be OK to ask a few additional questions about some other things I am seeing? There are some disconnected wires around the carb (I can post pics). I need to know the correct fluids for the various reservoirs. I would also like to know what items I absolutely need to inspect before dropping it in the water (assuming I fix the starter issue).
GA_Boater - thank you for moving this to the correct place. Obviously, I am a green horn!