The GMS 25 engine should be a good match for this plane.
http://www2.towerhobbies.com/cgi-bin...?&I=LXDXL2&P=0 with needle valve on carb
http://www2.towerhobbies.com/cgi-bin/wti0001p?&I=LXDXL9 with remote needle valve
Build the "B (Sport) Wing" with ailerons. That way you'll learn to use ailerons and rudder from the beginning. I have the PT-60 and it is a great trainer. The smaller plane will have to stay closer to you so you can see it.
Before you choose a radio, it would be a good idea to find an instructor and get his or her input. Your transmitter will need to be connected to a 'trainer box' and some brands are not compatible with each other.