Sloppy rudder bearings can be fixed relatively easily by using the following method. It is a great fix for boats that are built with a rudder shaft that simply bears on the inside of the fiberglass housing in which the rudder shaft turns. This method will also work if the housing is fitted with a Delrin plastic or similar material inserted into the housing. It is not intended to be used for boats equipped with roller bearings.

This procedure is described in detail in the West System Fiberglass Boat Repair & Maintenance guide. This is just a summary of what you will need to do.

Remove the rudder from your boat. Clean and degrease the rudder shaft and remove any rough spots or burrs. Fill any deep scratches with epoxy/Colloidal Silica mixture, sand and polish it to a smooth finish. Wax the shaft with three coats of automotive paste wax to act as a release agent. Clean and sand the existing bearing surfaces. Drill three 3/16" diameter holes through the shaft housing at the level of the bearing surfaces. Install your rudder and center it in the housing. Now inject a mixture of epoxy and a blend of 50% 406 Colloidal Silica and 50% 423 Graphite Powder. It will have the consistency of mayonnaise to prevent running or sagging. Load the mixture into a syringe and inject enough of the material through the drilled holds to fill the gap all the way around the shaft to a height of about 2". Allow the mixture to cure thoroughly then break the shaft free by twisting the rudder blade. The epoxy mixture with graphite provides a hard, low friction bearing surface that will last a very long time as long as your shaft is smooth.

This is an easy project, with great results, low cost, and you'll have a much more precise sense of feel while steering. The most difficult part is removing the rudder. I had to dig a hole in the ground in order for the shaft to clear the bottom of the boat while I was removing it. Just don't forget to wax the shaft or you'll never be able move your rudder again.
If you need additional information don't hesitate to contact me.
Ted Drossos
C&C 29mkII