This all sounds very interesting and I am looking forward to the rest of the build and lots of pictures. I have no experience of enclosed steam plants so I defer to others who have. I would say however that the whole plant should be quickly and easily removeable from the model in one piece. This is for fueling, cleaning, oiling, drying and adjusting/repair. Make any water connections to the hull using silicone tubing as this can easily be popped off and replaced many times with the fingers. Servo linkages need to be designed and arranged with simple, easy removal in mind. The propshaft coupling also needs to be simple and easy to join up and separate. In use a steam plant splashes an appreciable amount of oil and water and as such, although the boats inner compartments have been waterproofed, this still needs to be removed to avoid mould and worse. The words plywood, heat, water and oil don't mix even if marine ply. Mounting your steam plant on an aluminium or brass tray with the edges turned up and the corners sealed goes a long way to ease removal, contain water and keep the boat clean. The boiler and any steam pipes should be lagged for efficiency reasons but also to avoid burnt fingers when fiddling around when things is hot. I can't speak about insulating the boat itself. My launch is an open boat with only a canopy. Nothing outside of the tray gets hot. A dolls house bucket mounted close to the Maccsteam burner secondary air vent does get hot as does the lower sight glass fitting which causes the water in the tube to bubble. This was cured by a small aluminium screen.
Jerry.