Hi John and all,
yes, a very similar method used by myself, I have a hole drilled through the upright timber Gareth shows and stuff the pencil in that.
You do need space all about the vessel so that both sides can be done in one sitting, of course, having checked the boat "levels" before during and after the scribing.
I have one other check – I use a red laser beam just to confirm the pencil line hasn't drifted, as Colin says, where the hull curves inwards, usually at the stern.
As a point of interest, the laser I have also has the crossed beams, one at right angles to the other, and this is also very helpfull when getting deck furniture and fittings (even masts) upright when against the waterline as apposed to the deck in the vacinity. Mast rake can be set using this method and a digital spirit level!
Happy building, mind that table – your next meal comes from that area, Kimosubby.