Transom Assebly Installation Help?
 

The book on my alpha says to start from the middle working out 20-25ft lbs. When I tried that, 20ft lbs seemed to put the squeeze on the transom. You could actually see the drive pressed down the gel. Is this normal? It took some time to get 20ft lbs as the transom kept compressing. Am I doing something wrong? Everything lined up perfect with the motor installed.

Hate to be the one to tell you this. But if your transom is compressing in thickness, it's either rotted or has some voids in it.
You may end up cracking the inner transom plate if you tighten it down completely. Was the wood in the transom wet when you had it apart?
Gary

It is an 89 boat and yes the transom had been leaking, but not noticable. It is still solid and no rot. I did see some moisture squeeze out. I went half on the torque values and everything looked better. What else can I do? Can you say for sale!!!!!

Water came out and it compressed together?
Ouch, that's going to be expensive to fix. It is probably delaminated even if it's not rotted.
Gary

The only good thing to come out of this is my wife is tired of me working on old boats and is ready to buy something newer with a big block and a bravo.

I had a similar problem with my '66 donzi. Except that water squeezed out and I was able to dig out some rotted wood with me fingernail. I am currently in the process of putting in a new transom and reinforcing the stringers. That is a very big job.Yours doesn't sound anywhere near that bad. If its wet and you can get it all dried out, there is a was to drill small holes in and inject some resins into the wood and stiffen it up. I believe West Marine has a manual for this and the stuff to use. Final thought, If your wife says "Buy something newer, faster and nicer", I would listen to her! Good Luck