Hi Peter
Its 4 months now since your post, any luck with the hull ? Sorry I’ve never built one using this material (usually use matches) can’t be much different. Do you have a cross cut shredder ? if so brilliant, get you plastic bucket out and fill with diluted solution of PVA glue (use a waterproof version) and shred 3-4 Sun news papers (its what they were printed for!) and plunge into your bucket. Leave for a couplle of days, stirring now and then (best with your hands) and you should end up with a nice mulch. strain and your ready to make your hull.
Grab hold of a block of polystyrene (visit you local skip) and fashion this into your hull shape, remembering to make it slightly smaller to take the thickness of the mache. Get hold of a roll of clingfilm and cover the plug with it, now spread your gunge evenly over the plug about a 1/4" thick and allow to dry completly (best part of a week), keep testing for dryness by tapping with your knuckle – should make a good solid sound when fully dry. Remove plug and you’ll have a good solid hull, which will sand smooth. As to waterproofing 2-3 coats of normal oil based varnish will do, allowing each to dry prior to the next coat.
You can then paint over this with what ever colour paint you like (if using aerosols check spray on the inside first)
As I say, I’ve never used this material before but I’ve never had one of my matchstick boats fall apart on the lake ! – touch wood !
Cheers – Ken