ORIGINAL: Apothekary
1. What would be the best RC plane to start out with for around $200?
That depends. Are you looking for a complete, "turn-key" plane that is read yo fly? If so, the Super Cub that carrellh recommended is a great value. If you mean just an airplane that you have to add additional items to (i.e. engine and radio) then there are a lot of options. Some examples are here:
http://www3.towerhobbies.com/cgi-bin/wti0093p?&C=ACB
2. How much does the simulator software help beginners learn to fly?
I'm not necessarily and experienced flight instructor, not even close but but I do have an opinion on simulators. I see a lot of people building a lot of false confidence with them. They are really good at teaching basic airplane control ,especially control sensitivity, but they are still only a simulation on a PC screen. I say get one if you want but don't let yourself fall into the trap of thinking it can be a substitute for actual flight.
3. What are the additional components needed when buying a ARF kit?
This will vary but most quality ARF's need only an engine, radio gear (receiver, servos, battery, etc.), some fuel line, adhesives and possibly other miscellaneous small items. Building an electric powered ARF is pretty much the same except you wil need the electric motor, speed controller, battery(s) and charger.
4. Which is better, a gas engine or electric engine?
Good question and in my opinion neither one is necessarily better, just different. Which is better in a particular situation depends on the person and the plane.
I assume by gas you mean the typical fuel burning engines with a glow plug. These are commonly refered to as "glow engines". A good one is reliable and a pleasure to operate. If you are not mechanically inclined however and scared of touching screws on a carburetor, they could be intimidating. If you like engines though, you'll love it.
Some people say electric is easier to operate. This is true I suppose but batteries are expensive and you have to wait for them to charge even with the best charger. I personally prefer to fuel up and fly again as soon as I want. For small models though, I think electric works great. I just don't like it on my larger planes. Regardless, that's just a personal preference. Figure out what YOU like and have fun with it.
You may also want to take a look at this site:
www.gettingairborne.com.
Don't forget to check out the AMA link in the previous post and hook up with a local club. You'll be glad you did.
Also be very careful... before you know it you'll have a garage full of airplanes and a really really bad flying addiction.