@Jormungadr, thanks for sharing and I wish you every success with your Cav28. Its a good boat and will sail nicely (especially with the folding prop). Its getting on in years, but you already know that.
Warning - this is a cautionary tale, but I mostly blame myself. (Also, the workmanship of previous owners was incredibly bad, in places)
Please think twice before touching the engine. I decided to try to fix up my Bukh DV10 diesel and it went wrong. Talk about opening cans of worms! I kept a blog. The last episode is about conceding defeat, here
theboattinkerer.blogspot.com/2022/08/ .
Hindsight is easy, but if I could send a message back to my earlier self I would advise the following
* Keep the engine but replace all the hoses. You can salvage many of the spurs from the old rubber hoses by cutting off the crimping with a wire-cutter, which saves the agony of trying to find replacements
* Check the mounts - one of my mounts had snapped and the engine was actually sitting on the starter motor. I could have got it welded and refitted, whilst sorting through most of the other stuff that needed to be fixed
* Don't open up the engine beds unless you are prepared to do a major rebuild in the engine bay. My beds were stepped, not aligned, and the builders had packed out the underside of the GRP casing with scrap timber. They had also extended the steps by screwing timber blocks to the front of the steps. The engine beds became a horror-show.
* Don't attempt to refurbish a Bukh engine, unless you have all the tools, know-how, and spares. The replacement elbow was about $650 from memory, and was almost impossible to find. Refurbishing the Bukh might not be cheaper than a new engine, but a new engine might need surgery on the engine beds (see above).
* Use a stuffing box instead of a Volvo dripless seal. This might be contentious on this forum as different folks have different opinions. The trouble with the dripless seal was that, when I got the engine out (with the boat in the water), the shaft was unsupported, so the seal became unseated and nearly sank the boat. The water in the boat ruined the cabling, which was already in a bad condition with ends twisted together and covered with insulation tape.
* If you have the time and will-power, re-route the wiring to above the water-line. If your wiring was as bad as mine, this means a complete re-wire, but you can do it incrementally, as you have time.
I sympathise with you about the windows. Mine were screwed into the cabin top with the strangest assortment of screws and "sealed" with silicone (which doesn't do what you think it should do). I fixed mine more securely by getting them out, cleaning them and through-bolting them, using the ring-plates on the inside as an anchor (with nylon washers and tef-gel to stop or slow down galvanic corrosion). I'm not saying this was a good repair, but it did something to stop the leaks. Heaven knows what the leaks did to the balsa core.