The cars to choose from personally would be the RC8B, Mugen MBX6 and Xray 808 10.
RC8B is relatively cheap compared to say a Kyosho MP9. Comes with lots of upgrades (only extra i would suggest getting would be the Ghea 1.3mmx8 hole Magic pistons). Spares are relatively cheap, easy to work on and lots and lots of support trackside and on the net.
Mugen is a bit more expensive but the thing is built like a tank and if you do manage to break something then good effort

. Support is fairly decent trackside and on the web. Not to sure about spares but i haven't heard a single bad thing about them.
Xray again built like a tank and has superb support again like the above cars. Spares are a bit more expensive i think but the thing hardly wears so it would probably work out the same.
Kyosho i've heard mixed results. Damn expensive no one can deny. Online support in terms of spares is pretty good (apexmodels from what i can see). Set-up support though i really can't see any on the web but trackside they're just as friendly and helpful like all the teams.
Engines for starters something like a Picco basic. For £90 i think you can't really beat it for the money. If you know your going to stay racing and you're a quick learner (or can get on well with people and get them to teach you on a higher end engine) get a something like a Reedy (cheap, very smooth can be a lil bit picky on tune but once you've got it you're sorted!), OS (haven't heard a bad thing either a V-spec or the V-spec Speed) or one from the RB stable.
Is it worth the extra money....i personally would say yes. The designs of the cars have improved over the years and parts for the older cars do get harder to find in time.
Electric v Nitro.......don't even compare the things. To different animals. It's like comparing cats to dogs. Electric i think is quicker but you don't get the 'atmosphere' and you get to hear the chassis slapping the ground after big jumps without the engines (sounds nasty !!! ). Plus there are more nitro racers and races about than electric 8th.
8th or 10th scale. Get 8th. Bigger, tougher, goes over bumps better and easier to work on
Buy yourself a decent starter box (don't skimp out, it will bite you in the ass) and 2 decent servos! Keep it clean. If you don't have the time to rebuild it before every meeting at least give the clutch a rebuild before each time you go. Stick to one brand of fuel with the engine you use. Clean the air filters and keep oiled. Replace glow plug i'd say every 2 meetings (you can do about 6), makes tuning the engine easier and rules out if the plug is knackered if you've got problems. Decent set of tools, EDS are good

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Most importantly, enjoy yourself!