Hi,

If You want to use a 2-stroke that is made today probably OS 65AX is among the better choices even with the standard muffler that is shipped with the engine. Have a look at Great Planes Dirty Birdy 60 ARF and You can see how that engine looks like and fly with that engine. You can always hanga MAC Super Quitepipe if you want a pipe on it.
As for retracts You have electric retracts also to choose among: E-flite, Robart and Giezandanner, the electric retracts from E-flite has some reports of less desirable nose gear wiring/cable problems, Robart electric retract are very expensive and very new (unproven) and last Giezendanner electric retracts has been around for a long time.
FK Speeda is a nice choice of classic pattern plane. Very nice lines.

/Bo