I'm also new to 1/8 nitro, still need experience with setting the needles and what clutch stuff to use. I already got the thing a year ago, but timewise I've only got to spend 4 days on it so far
When I 1st started I got a budget motor with it, a Picco P3 basic. Cheapest thing you can get, since I figured better to learn (and error) with this thing than a motor I actually care about. At the track I was triing some things since it didnt accelerate like it should (it would stop for a second but keep going afterwards). Some guy offered to help me and about 10 minutes later the motor was destroyed.
Still dunno if the motor sucked to much or that they guy offering to help was a bit to ambitious on the needles.
Anyway after that I got a 2nd hand RB WS7II, and I know 2nd hand nitro is a risk, but it was cheap and it still passed the drop test
(holding the cranckshaft and letting the cilinder drop. It should stop under compression when it's still good or atleast hold a couple seconds on compression)
The thingy runs fine for now. But got a old model RB S7 as backup.
So what I've learned so far is, don't let anyone work on your engine unless you know who they are and that they know there stuff. Also many modelshops will have older models of competition engines that they will let you have at a good discount. If you're new at this it won't matter if you've got a '06 or '07 spec motor.