Hey Andy.
I have done 2 ejatos so far...
stick with the stock 58-56-54t spurs, the are .8mod = 32 pitch. If you stay with a motor with an 1/8 shaft like the traxxas velineon motor, you can use any 32p pinion, like the ones traxxas sell for the emaxx. This will also give you more room between the trans and motor, some gearing choices with a revo 40t spur may have interference issues with the motor/tranny.
As far as 4s1p a123 goes, they will work fine with the MM. And depending on the geaing you chose, 1p should do fine.
I used the single speed setup in both of mine, and the slipper clutch did not cause any issues. I set the clutch to slip slightly, I do not run it loose. Motor brakes are fine, but the jato is 2wd so it does tend to spin out under hard braking.
Here are some pics of the 1st one I did. The other has a stretched chassis (welded in some extra chassis material)