WaterProofing and Painting
Is it this Dumas kit? http://www.dumasproducts.com/product_info.php?products_id=391
I believe that that boat kit comes in different sizes, and has been around since the 1970s. It's a racing hydroplane, and not the first choice I would have made for a beginner to model boating! Here is a video of an electric one running:
You may just intend to build it as a display item, but if you are thinking of running it then you may find a bit more advice helpful?
I suppose that the first point to make is that that old World Engines radio is quite out of date. If it's 27Mhz it's still legal, but, even if you have all the bits for it I would advise against running anything with a vintage radio which may be unreliable. Don't throw it away - it's worth good money to a vintage collector - but a modern 2.4Ghz set will be much more reliable.
I see that the boat comes with an I/C motor. If you are not experienced with model boats I suspect that you have not used one of these? Again, these are becoming a bit of a specialist skill since so many lakes ban their use. Converting the boat to electric would bring it more into line with modern practice.
Common advice is for beginners who have little experience to go and talk to the nearest club, and I think that applies in spades here! Racing boats run fast, need careful expert set-up, and are easy to crash - possibly damaging more than just your boat in the process. A club will have more experienced members who know where to run the boat safely, will help you set it up, and may let you practice with simpler boats to learn how to do things properly before taking your (and your uncle and grandfather's) pride and joy out on the lake...
Here's someone else with a similar problem to yours... https://www.rcgroups.com/forums/showthread.php?1661638-1970-s-Pay-n-Pak-boat-NEED-HELP%21