My friend John uses the small Midwest single cylinder, single-acting oscillator in his 4' tramp. The Midwest Heritage package comes with boiler, and is economical; you can having it running on the bench in about an hour. The tramp moves fine; it uses a custom firing system for boiler, using butane and ceramic burner. However, the tramp hull is more streamlined (L:W ratio) than a tug, so the comparison is not exact. Also, the engine is not self starting, nor is it reversible - these are qualities that a tug owner will desire if he wants to work barges or perform shiphandling (docking assist, etc.). But if your friend wants to get a taste of steam for low expenditure, the Heritage kit is the way to go.
I have a TVR1A, and it runs fine on the bench, have not built a boat for it yet. It is the best bargain I know of for a nicely machined engine. It took me about 13hrs to build mine. The Graham engine uses about 8x the steam as the Midwest engine (bigger motor, double-acting, 2 cylinder). So, if you go for a reversible self-starting engine like the Graham, be prepared to build and fire a bigger boiler than you'd need for a simpler engine.
Tramp thread
http://www.rcgroups.com/forums/showthread.php?t=717385