The manuever referred to as hovering (as in 3D) means that the plane will "hang" on the prop indefinitely, and then pull up out of the hover by adding throttle. No LT 40, or any other 40 size trainer I've ever seen or heard of, will do this on a 46. And if someone says their's does, I'd be very skeptical to say the least. (Unless they managed to build it at 4 pounds or under.)

Unlimited vertical means just that. The ability to take off, pull straight up, and climb until the plane can't be seen anymore. Hovering, as described above, requires unlimited vertical at least.
Dennis-