I have a 3 1/2 lb Modeltech Magic that I fly with this motor:
http://www.hobbycity.com/hobbycity/s...idProduct=3887
And this ESC:
http://www.hobbycity.com/hobbycity/s...idProduct=2165
And these batteries:
http://www.hobbycity.com/hobbycity/s...idProduct=7363
I have been really happy with this setup. The ESC does get warm, but has not failed on me yet. If I were to do it over, I'd spend the extra few bucks for a 60A ESC.
It was much cheaper to electrify this plane than I thought it would be. For servos, I usually use Hitech 311's. They have worked great for me and cost $9.99 at my LHS.
Good luck