Sounds good Tim.
Remove the muffler, remove the venturi, buy an extra head from Tower Hobbies (cheap) and have it set .010 from the piston at tdc. If you can't do that, then remove the gasket and lap the head to the liner and run without the gasket. This will get you around 95-98 mph with the 2 line, less without a good head. Get APC 7x7 for a prop and you're right in there. Run pressure, either a bag or tin tank.
The new kit offered by Pat King is a good starting place for an airplane. Upright engine, lots of space and simple so that a cowling could be added if desired. We can help you learn to fly around that pesky pylon.
K