The Lark in the other pic has an extension. I'm not sure, but possible the '56 30hp shaft and housing extension might fit the 18 (JB might know for sure). Maybe a possibility, anyway. Think you have a couple of '56 long shaft models. Driveshafts and splines would have to match up. Anyway, something to consider.
I don't think I've cut down a transom -- maybe can be done without issues. And maybe grandpa's parts will show up yet before Spring.
(a little snow in NY, as you say. think JB's got more in WVA, though. My son in DC is getting more than they can handle tonight.)
[ed. took another look at the '56 Lark -- 5" extension looks like it might belong to the Fleetwin, so maybe that's where it went.]