Is the motor an outrunner or gear drive? Either can be made to fit in a shocky. The outrunner can be mounted on a cricle of plywood glued to the front, the gear motor can be mounted to a stick. I can try to get pics of these mounting methods if you want.
3 servos and Phoenix 10 would work fine.
Prop depends on which motor. For the outrunner 10-4.7, if geared 6.6:1 then 12-6 or 11-4.7, GWS slowfly props.
Yes it will fly good and have enough power to hover. Would be better off with a smaller lighter battery though.