I'm sure you'd be fine with a regular Align 430L Outrunner motor paired with an Align 25A ESC. This setup will be slightly more powerful than you would need for basic flying. Everyone starts flying normally, but then when they get really good and flying, and regular flying starts to bore them, they move one to some more complex acrobatics. This motor/ESC combo should work pretty well for you in that eventuality too. ;-)

If you can afford the 401, I would snatch it up! I've got 2 GY401s, but I've used a Telebee gyro with heading hold, and an align gyro....which were pretty much the same gyro. There's no comparison between those and the 401.....it's in a league of it's own. My 401s hold steady as rock, without even having to mess with rudder trim like you would with the cheaper ones. I really wouldn't cheap-out on the gyro if I were you.