What to do about the hole in the frame ... First, check the rest of the frame for rust or rust through. All areas near the suspension and engine are particularly susceptible to rust. What you find from inspection will determine what you do next. Second, Welding to the DeLorean frame is doable. I had multiple rust problems fixed by welding in patches. If your guy says it's a problem, find a better welder. BTW ... inform the welder of the epoxy coating and encourage him to weld in a well ventilated area. Thirdly, check the archives for frame refinishing (The IM2WITTY guy should check here as well). Multiple posting should be listed there. One of my low days of DeLorean ownership was realizing that I had not just one rust area but many. Even though the epoxy finish can look pretty good, it can have rust behind. My preference for refinishing is powder coating. First an epoxy rich primer coat followed by the finish color coat. Best of luck. Nick