Jack, I have the 700LX (1999) and do not have stress cracks in that area. It may be that someone got a little to zealous with the transom saver and trimming down. Or the boat experienced some flex in the transom due to very hard running in heavy seas. Check the transom for soundness. Pound on it with your fist to test for solidness. Have someone else drive the boat while you ride shotgun and keep your eye on the motor/transom/splashwell. See if you can detect movement when the transom is stressed (hard acceleration out of the hole, bounding along on plane in less than flat water). Most likely, it is fine. If it's really worrying you, take it to a dealer or boat yard and ask them to inspect it.
TEE, stress cracks happen because wood and fiberglass have more flexibility than the gelcoat. Under load, if they flex enough, the gelcoat can crack. But the appearance of stress cracks doesn't automatically indicate an unsound boat any more than cracks in the paint on the side of your house indicate a poorly built house. Gelcoat doesn't provide any of the structural strength for the boat. Cracks are usually cosemetic.
