The OS 1.60 FX is an awsome engine. The plane will be SLIGHTLY overpowered with the 1.60, but not enough to worry about.

You should be able to find 1.60 FX used for under $200. New they run about $260. They are a ringed engine, so they will take a little longer to break in and, IMHO, you should use a fuel with 18% or better oil.