The Subaru Robin engines are generally considered to be a better product than the Honda's. Made in Japan as opposed to Thailand and a steel cylinder sleeve instead of aluminum.
http://www.robinamerica.com/series.aspx?sid=21
There is a company developing a very slick use for this engine adaptable to any 2 or three wheeled bike that should be available in the near future.
Alcohol is a good fuel for that 2 stroke. There is a good chapter on that in David Blumes book. But those Chinese 2 stroke kits are sketchy at best. There is a Russian version of it also but hard to find and harder to find parts for. Tanaka makes a really nice 2 stroke and so does Mitsubishi but are generally used for rear mount application via chain, belt or friction.