If you have to ask, it's probably best just to skip the Fox learning experience and get something simpler like a modern OS.
I wouldn't really recommend the Fox, because unless you have a nostalgic attraction to it, you're probably not going to like it's personality. Also a low time, or new Fox 35 takes a long time to really run-in and start developing nice manners (for a Fox anyway). If you don't fly much, you could spend a miserable season flying-in a tight engine. Now assuming you've read my suggestion and still want to do it, I'd leave the engine alone as much as possible. You don't need fancy reworking, or custom parts to have a Fox run OK, and all the parts and skilled labor isn't going to make the engine that much better, it'll still just be a Fox.
My usual approach to a used Fox 35, is to start by freeing up the stuck piston from the liner by heating the case with a heat gun until the castor melts and flows. Next I pull the backplate which generally destroys the cork gasket, and hook behind the connecting rod with an Allen key or other tool with a 90* bend, and carefully pull the rod while watching the wrist pin. It should move freely, if it doesn't it's likely the castor oil has frozen the rod to the pin. If the engine is run with the pin frozen, it'll run like poop and probably damage the engine. If it's sticky, heat it up with the heatgun until it can be moved. If it's really bad, or if it's been run while stuck, I'd probably pull the head and piston/liner assembly and check to be sure the wrist pin retainer clips are fully seated in their grooves in the piston. If the stuck pin has rubbed against the keepers, either by running the engine or by tugging the rod trying to free it up, the keepers can pop out and they'll eat the liner when the engine is run. If the rod isn't stuck, or frees up easily without much trouble, I make a new backplate gasket and reassemble the engine. Lube the engine with after run oil, add a prop and flip it through a few times. It should be smooth, free of drag, with good compression, if any drag aside from compression is felt, a bit more oil or heat may help. If it flips smoothly, freely, with good compression, I move on to the needle valve assembly. Assuming it's got the old conventional style NVA with the fuel inlet on one side of the case and the needle on the other, I make sure the spray bar holes are at the front-back and not top-bottom, and that the needle is the full taper version, not the older style with a flat on one side. It's usually a good idea to put a piece of fuel tubing on the fuel inlet of the spray bar, and blow through it while screwing in the needle, make sure the needle can completely close off the airflow. If it's going on a profile where the needle will be sticking straight up, I cut off the top knob and grab the top 3/8" of the shaft and bend it over 90*. That will keep the needle out of harms way, where it shouldn't be damaged except in a bad crash, also it's easier to adjust. Finally I cut a piece of fuel tubing about 3/8" long, and slide it over the needle's threads, and screw the needle in so the tubing compresses between the lower knob and the spray bar.
From there it's just a matter of running the engine, a lot. If you can't handle the shaking, noise, long break in, and special fuel, you probably still won't be happy with it. But fortunately there are always OS engines.