Sounds like an interesting idea.  I would mount the stuff on the inboard side and make a plastic or balsa cover to keep the oil off.  AAA cells would probably provide enough power for the typical duration of a CL flight.  This would probably work just fine for sport flying as long there was no interference problem with nearby R/C activities.

One point, you should not expect to be able to use the radio system in contests, not permitted by AMA rules.  For CL events all control functions have to go through the lines, at least until AMA acknowleges through a rule change that the interference problem that originally prompted the rule doesn't exist with the 2.4 GHz systems now available.  I don't believe the CL contest boards involved have received proposals to that effect so far.  Even so with the rules change cycle now used it couldn't take effect before Jan of 2011.

Try contacting Clancey Arnold he's in the Vendors Corner under U/Tronics.

You can still do it all, Roger; you just have to conquer with brain sweat rather than electronic gadgets. How about using 4 lines? The non-flying lines don't have to be as heavy, either. You could add a 2nd handle for your "other" hand, and trigger a bomb drop, have proportional flaps for T/O and landing, and maybe another function. Retracts?

Rodger    Why not talk to the person you saw doing this. If it was at a contest then find out what system he was using. Some scale people use RC equipment that has no RF section in the transmitter and they send the signal down the lines. What event do you want to fly?
Ed