I had my 98 208 transom replaced last year professionally , yes the outer skin came off in one piece he didn't reuse it . Mine was worse than yours but interesting the area on both upper sides were wet as the upper section cap is sealed from the factory with compound which shrunk and water was able to enter from under the cap . He separated the top section by lifting it up a blocking . When rebuilding he fiber glassed over the lip and also where the aluminum cap was where the engine is installed , also pvc tubes installed where all engine mounting bolts go , he also installed a 4 wide inch wide SS plate across both upper and lower engine bolts .