RE: water proofing
Theoretically it is possible to do this. Plasti-dip this and that, the motor (provided that its brushless) can get wet and not suffer any damage. As for the ESC.... Have any of you seen the liquid cooling systems for desktop computers? Many people said it couldn't be done and yet nowadays many powerhouse gaming PCs feature liquid cooling. Seal up the ESC and get a liquid cooling system rigged up in there. HOWEVER!!!! with all that plasti-dip and the weight of the cooling system, good luck getting your bird off the ground.