1/8" luan. Are you sure, - and not 1/4" if so, that's great news. Is this a national chain or a local lumber CO? I heard of people using Door Facing plywood for stitch and glue boats. Apparantly the door facing ply is about 1/8 also. In CT it's available at many home centers. You usuallly have to ask for it since it's not always on display. Actually many of these plywoods are metric sized since many come from over seas.

If it's truly 1/8" as you say, I'd go for it. Okume is great stuff, but you deffinitely pay for it. Epoxy when you're done as NPenney said.

If you epoxy first, you then have to sand all the areas where you run filets for good adhesion.