Mircea. Combustion engine. This would be ok, but you would need only one shaft and so hac=ve to take outthe ones you have and fit one in the centre. Most lakes do not allow i/c engines so you would be short of places to run it.
If the top of the rudder shaft tubes are above the waterline there should be no water coming in, if below, then grease may keep it out. A lot of boats take on very small amounts of water so i wouldnt worry about a little bit..
The motors look like standard 540 types, although there is a lot of variation in this size regarding power. It would be better to put new shafts in. They will not let in water if they are LIGHTLY greased and adjusted so that there is virtually no end-end play. Cut the old ones out, and put the new ones in, with the couplings and motors on their mounts (that you intend to use) so that you can get everything in line, the bits can be held in place with plasticxene, for instance, and then a drop of superglue will hold the bits in place so yuou can fix everything in with epoxy glue, or car type filler.
It depends on how fast you want to go as to what size of motor you want to fit. A standard 540, of a medium output (look at a few and you will see low drain types through to high power ones) on 7.2V Nimh batteries with 30 or 35mm props will propell the boat ok,
Speed 600 motors will make it go fatser, and so on…it is a bit difficult really, there is no set rule. However, 500 and 600 can size motors have the same mount, so you could start with the original motors, change to more powerful 540 types or even 600`s, simply by fitting new motors, with no other changes.
usually the motors are mounted behind the shafts using a universal joint coupling, so you would need the space behind the new shaft ends to allow fitting the new motors. IF there is not enough space, then gears and toothed pullies are available to mount the motors over the shafts, like they originally were. In fact, gearing the motors down would allow larger props to be fitted, and be more efficient. A ratio of 2:1 would be sufficient.
Coating the inside with resin cant hurt, but repainting the hull will re-seal any very small splits or cracks( larger ones, try rubbing epoxy glue in the cracks)
Ashley