Hi,
The JanR CAP 232 is indeed a beauty! Since it is a small wingspan high performance aerobat...make sure that you have the experience to fly it properly!
As for using Lithium Polymer to power, the answer to your questions are mostly all "yes".
Lithium power outperforms NiCd and NiMH technologies because the weight to power density is so much improved. In other words, you always win the weight to power battle when you pick Lithium Polymer technology.
So, what's the catch? Pricing. You'll pay more for this technology...at least today.
The JanR CAP 232 is recommended by Hobby Lobby to use an AXI 2808/16 brushless motor that draws 20-22amps. The recommended 7-cell, 1700mAH pack weighs 9.7oz.
To replace the pack with Lithium, you need to deliver 20-22amps continuous, or, at the very least, peak short term.
For one example, the Kokam 1200HC cell delivers 6amps continuous and about 10amps peak short term. A 2-cell Lithium pack in series can replace a 6 or 7 cell NiCd pack. Therefore, a 2s3p pack of Kokam 1200HC cells will provide 7.2 volts under load and deliver 18amps continuous or 30amps peak short term.
The good news is that the 2s3p Kokam 1200HC pack weighs only 6.4oz and gives you a total capacity of 3600mAh. This is a 3.3oz weight reduction over the 7-cell 1700mAh pack and double the flight duration!
The baqd news is that the cost is $108 compared to the $59 for the 1700 pack.
Finally...yes, you can charge the whole pack together within an hour and fly again.
Regards.