If you want to go lithium (you don't have to) get a LiFe in pretty much whatever size you want to get it in. I have a .60 size Ultra Stick that uses about 100 mah per flight. So a 1000 mah battery is enough for 6 flights with plenty of safety margin left. NiCd's still work as well as they ever did though, and they'll work with a basic wall wart charger.
Are you talking about using 25 year old servos that have been sitting for a long time? They may be ok, but more often that not they'll be unreliable. At least do an hour of testing on the ground (wiggle the sticks while watching TV) before flying. Servos have improved a lot since then though, so for about $60 you can have a new set of Hitec HS-425 servos that will be stronger, center better, hold better, and they'll be new.