I wanted to comment on the radios first. I use a JR 421ex. I think this is an excellent radio to start with. It is computer programed, but not so complex as to have you sitting on your living room floor scratching your head reading the instruction manual. Second, it has a two model memory so it will be good for the first few planes you get. Third, it is actually a 5 channel model (the fifth channel for any aux item you might want like retracts). I'll be building my third model in a few months and plan on getting the JR 9303. I figure I shouldn't have to buy any more radios for myself, but I'm also at the point where I want to add more features to my planes like retracts, flaps, etc.

On engines, I use an OS .40LA on my LT-40. This has provided enough power for just about anything I've wanted to do with the plane. I'm still relatively junior at flying so in the future I may want to upgrade to a .46. A guy at my local flying club has an LT-40 with an OS .46 in it, and it has almost NO take off roll! One other point to consider is at higher altitudes you would probably want a bigger engine. My .40 just didn't have the OOMPH when I few it in Colorado.