i vote mojo .40 with a gms.47 and 12.25x3.75 prop
you could buy a ax55 w/ 13x4 and yes its better than the the gms but its twice the price and you dont really need the extra power from the ax55 (i cant believe i just said that, read my sig) but the gms.47 will hover it around .5-.66 throttle (im guessing) compared to .33 on the ax55. the gms.47 would give more than enough power and is the most reliable engine i own.

as for servo's. you cant go cheap on servo's here you need the torque, at least 70oz, 40oz is fine for the throttle.
if you are really having trouble footing the bill for these http://www3.towerhobbies.com/cgi-bin...&I=LXDTB3&P=ML
get these http://hobbycity.com/hobbycity/store..._bearing_servo
they are chinese servo's that are very fast and have some insane torque for the price (6 bucks), however shipping isnt cheap and it takes a month if you dont pay for ems which is even more expensive (i would buy 8 of those servo's to have a few extra incase one fails and to have a few around for rudder servo's on other planes).