We have a Laser 28, bought new in 1984. We haven't been racing much the last few years, but still enjoy cruising our 28 on Puget Sound. This past summer the original Bukh engine (which has been great for 23 years!) overheated and stopped. We were towed home and our mechanic found that the water cooling circulatory pipes were heavily corroded with the result that the cooling system did not work well -- allowing the engine to overheat. The mechanic opened up the pipes and cleaned the water colling system thoroughly, but then found that the compression was really bad.

He thinks he can repair the engine but wants to take it out so he can work on it in his shop. We are wondering whether the engine can be removed with the boat in the water without sinking the boat? I.e., would water come in through the saildrive if the engine were removed?

Do you know the answer to this?

Nope, boat must be out to remove the engine.  It is bolted to the sail drive leg via four (maybe six?) bolts which you can only get to from under the baot.