I'd also suggest a little 20/40 (light oil) around the switch on the front of the engine as well, and the adjacent bullet connector.
Also, depending on how you wire your Mychron/Alfano/Unipro - check that the wiring can't short against the block or the case around the starter pulley.
Mainly though, it is around the plug that the water plays havoc. I spoke to Roger (RPM) at the weekend, and you'd have to try very hard indeed to get water into the engine innards and cause a problem. There might have been one such at Whilton Mill - I haven't heard from Michael whether or not #30 drowned his engine by ploughing through the middle of the puddle that is shown on the S1 website at: - http://superoneseries.com/rotaxhonda-round-1-whilton-mill-27-29-april/
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