Hi James,

I wish I had completed my Type S setup so I could give you some good comparison points vs the other versions. I think the Type S has great potential for everything - drift, race, rally!

But let me try and respond to your queries in order.

I use turnigy 5000mah 7.4v lipos and they fit very snugly - just right. I think the hobbyking website has precise measurements, otherwise I can get the digital calipers out!

Definitely recommend bearings (at least in the drivetrain), servo saver and oil shocks as initial upgrades.
Yes, you will notice a massive improvement with oil shocks - much less bouncy. This is particularly relevant if your doing any sort of off-road. I doubt changing the springs on the stock friction shocks will improve them much.
If you are going off-road try and get blue-sealed ball bearings.
If you want to drift / tail out consider putting tamiya anti-wear grease into the rear diff.
If you can, an alloy steering setup with steering ball bearings makes a significant
improvement. I like the Eagle Racing one from the Broadtech website.
A parts (unless using the Type S) as spares would probably be a good idea, the difrt version ones of possible as they're stronger. Do not get the low-friction tamiya step screws for the steering posts, they snap easily.
Also highly recommend a Square brand TT-01 suspension guard (look on Banzai Hobby website) - I'm yet to break anything in the suspension area using these.

I actually differ from some people - I actually prefer titanium hex screws. They are a pain to get in and out (don't try and use an allen key, get a proper handle one) but I hate the way the stock tapping screws get loose over time if you take them in and out repeatedly.

I haven't seen a TT02 kit with oil shocks but no bearings before - I'd be double checking before purchasing.
The Zakspeed model I think should just be the stock TT02.
Paint would be Tamiya PS spray paint. It's a flexible paint designed for RC bodies.

If you can get a kit with an ESC that's good as they're a bit more cost effective that way.
The TBLE Tamiya ESC is good as you mention as it can run some brushless motors down the track.

Steering uprights are the part the wheel connects to and are part of the 'A' parts tree.
Up to you re alloy upgrade, alloy is stronger and sometimes lighter, but can bend.
Plastic has some flex to it and can sometimes bounce back.

If it is not advertised as the Drift model (TT-02D) it should not come with drift tyres.

So, what do I recommend?
If you are just using it as a basher I would cost up both the Type S and the Type D (Drift) and see if either works out significantly cheaper.
Neither comes with a body but you can get a cheap one pre-painted off eBay ideal to bash about.
The drift one will come with the reinforced bits, bearings, oil shocks, faster motor. You'll need to invest in proper grip tyres though
The Type S gets you a better suspension design, bearings, oil shocks, servo saver and I think would be a more competitive racer but may not be as durable for bashing.
I'm leaning towards the Drift Spec.

Good luck - Lettuce know how you go.
Cheers,
Crouch