RE: engine recomendations...
Sarge-
If you didn't already reach this conclusion on your own (which you probably did), you REALLY don't want a wankel rotary engine on your LT-25. 1) It is prohibitively expensive, 2) they drink way too much fuel for the power they put out, 3) I've heard they're pretty heavy, and 4) I believe they are a little difficult to keep running. Basically, they're kind of a novelty that has been around for at least 25 years, but are not really practical.
If you really do want to do something other than standard 2-stroke, go for a small 4-stroke. A Saito .40 or .30 would work well. A Magnum .30 can be had for less $, currently $129 at Tower.
-Scott