I put in over 25 years cruising L Mich - 12 of it with an A4, which I rebuilt with advise and parts from Don Moyer. I think you are getting some good advise here.
The oil is pumped out through the dip stick tube. I have found this solution to be the easiest by far:
http://www.yachtsee.com/pelaoilextractor.htm
You will never get all the oil out and there is no filter on the A4.
I would go to Moyer's site and ask the forum there what process is best for getting the water out. If that does not help, then call Don up. He is a great guy and always willing to help. There is a lot of knowledge at this site, but Moyer is unquestionably the guru.
I would do the several oil changes and just see how the engine responds before rushing into anything.
Should a rebuild be needed, they are not hard to do. If you are uneasy about assembling the short block, a machine shop can do that for you at a reasonable cost. It will also give you the opportunity to pull your tank out and clean up the bilge around the engine. I took my 25 year old tank to a place that did fuel tank restoration and was very happy with the results.
If you are headed out into L Mich you really want to avoid going the outboard route. Crashing into those steep L Mich seas with a10 hp, with its prop constantly popping out of the water, will make for a long, tedious haul. Distances between ports on L Mich are fairly long and at some point you will find yourself bashing it out for 6 or 7 hours (make that 10 with an ob) There is a good reason why Ericson went to the extra expense of an inboard.
Another suggestion I have is buying the CDI prop designed for the A4. I was very happy with the results. I was uneasy about it being plastic, but it performed well for me for 5 or 6 years until I sold the boat.
http://www.sailcdi.com/pa4page.htm