Hi LB, I have a number of scale boats, that are very fast, Hunts, Aerokits Fireboat etc, so my input is from experience. If you want to stay brushed motor, get a Graupner 700 BB Turbo. 2 reasons, very well made,and thrive on big volts. Your current set up will only ever be put putting around the lake

Go 8.4v, and run on 12volts nimh, my Aerokits Fireboat is 3 feet, its 8.4v motor on 19.2volts and goes mental, I also did a lot of work with a 12v BB Turbo (my preference) and the 9.6v, but has to be the BB Turbo.
Now I am not talking ballistic speed, but certainly scale and plenty in reserve on 12v. You will need a good quality esc, and electronise supply these, the good news is they are repairable, and UK based, get the biggest 35amp one, as you progress to faster and more amp draw them your equipment progress' with you

I run a gearbox, but direct drive will be fine, hence 12v not 19.2v like mine. It will need to be lubricated, and an oiler tube is the best way imo, the oil will coat the shaft and prevent the surface becoming tarnished from standing water and moisture after use. I know some peeps like to stuff grease up the tube, thats fine, but on a fast rev prop the grease "funnels" and could cause drag.
With props, I use a 3 blade cleaver propshop prop on my Fireboat, but this was after a great deal of testing with cheap 2 blade "x" props, you don't want to go buying an expensive prop first time and get it wrong, there is nothing wrong with the plastic 2 blade "x" props for your application, see my Huntsman videos, I doubt there is a faster scale boat on this forum, and it uses a plastic 52.5mm "x" prop. When you have some test figures, you can then invest in a better prop, I will eventually get a 3 blade cleaver from propshop for the Huntsman, they are very well made, not soldered together, and balanced,
the batteries need to bbe high mah, the lead acid cannot give up the juice quick enough, compoment shop do some really nice nimh stick packs, get 3000mah or upwards, then watch the boat fly! hope that helps

pre gearbox video
http://www.youtube.com/watch?v=xLOkqBsCoi8&feature=player_embedded