So... this happened:
Don't worry, it was intentional.
This is the hole for the daggerboard. Once I flip the boat over I'll post a pic with the boat on the sawhorses and the daggerboard down, and everybody will understand what the hell is going on...
We cut it with a router and flush trim bit. It worked fantastic. I did gouge the inside of the daggerboard trunk with the drill bit slightly. Here's the initial hole.
Then we cut it out with the router. Here's Chris cutting up my boat.
If it sinks I'm using this picture as blackmail.
We started with chopping the hole, then did some sanding while the morning warmed up. Don't want condensation in the paint. After the routing and sanding the boat needed a good cleaning. The router makes a ton of sawdust. Then one more round of wet sanding, some more blue tape, and we rolled on coat number four of paint! It sure is easier with a second set of hands. Thanks Chris!
That may be the final coat of polyurethane. I'll have to look close and see how it came out. Then lots more sanding and varnish on the wood!