Welcome to our world
I may not be much help since I think I'm a little different in how I build, but I prefer artist acrylics (Graumbacher for brush painting and Deco Art brands for airbrushing) and oils (Rub n Buff) when building plastic sailing ships. A sailing ship needs to project depth and dimension, and acrylics are much easier to mix and work with when trying to get a scale look to a ship as small as this kit your wanting to build. In a few weeks, I'l be posting pics of my current 1/150 USS United States in the Destroyer Group Build. I like to use oils to do washes and weathering since again, I can adjust the tone of the colors much easier than with enamels. My advice is to continue to search this forum. We are always looking for that infinite question of what a particular ship looked like 200 years ago and how to paint it. Also, each painting method requires some research and practice.
I have built the 1/196 kit a few times, the sails that come with the kit, depending what issue, are not bad. However, there are many techniques to make you own for this kit. Three that I use are
1. Use cotton/acrylic coat liner and glue over the plastic sails using diluted fabric glue. This method gives a nice, canvas look, however, makes the sails a bit too thick for this small of scale.
2. The tin foil sails. I like using foil because it is easy to shape in the furled position. However, it needs a couple of coats of primer to allow the paint to adhere to the foil.
3. Parchment, tissue, and/or Silkspan. These materials give a cloth appearance when painted and are easy to shape by using diluted white glue, and can lead to the best results for small scale sailing ships. They do require some practice to use.
A few sources for fittings if you do not have a LHS are:
Model Expo
Dromodary
Model Shipways
The Laughing Whale
BlueJacket Shipmodels
Seaways Ships and Scale
However, in this scale, we generally must resort to scratchbuilding many of our fittings, replaceing the kit thread with higher quality cotton thread, and rigging the shrouds by hand in lue of using the plastic ones supplied in the kit.
If this is your first kit, I would suggest building it strait out of the box. This will allow you to complete it faster without running the risk of burning out, and you will become aquainted with many of the details of the ship so that it will be easier for you to tackle a kitbash in a later build.
I'll let some of the more experienced builders take it from here.
Scott