First off, I wouldn't say TGP's/MGP's are either outdated or that conversion ratios are low. Then again, in order to have good conversions you need good sponsors with good content and good FHG's, which may well take you a while to find.
Second, I would NOT pre-pay for hosting for a whole year. I would also not trust my business to Webair, do a search around here and see tons of people complaining about their virtuals and sometimes even dedicateds. I know there are many others who are satisfied, but I would personally not take such a chance. You can get a virtual with say
http://www.hosthead.com for the same cost and I doubt you'll ever run into any issues.
Third, don't pay for the thumb script when starting out. Get the free version and upgrade to the non-skim version only once you get enough traffic to warrant it. Otherwise you may well get stuck with a copy of a script you no longer need, if the site never takes off.
Fourth, you also don't need to pay for the design, when starting out. Just make a decent template yourself, with one header graphic using just text and some Photoshop effects. In fact, you can even make it all text, no graphics whatsoever. Most designers have never run a TGP in their life so they don't know jack shit about how to make people click, so save your money.
Fifth, there are more sources of feeder than Choker. Although Choker is a safe choice, it still doesn't hurt to shop around. We provide feeder traffic (
http://www.trafficadept.com) as well as Ravo (
http://www.buyfpctraffic.com) and Hunter (
http://www.traffic-out.com). Another option would be to buy hardlinks on high-traffic sites, this may well prove to give you the most bang for your buck, but it takes time and lots of trial of error funds, both of which you don't actually have. Whatever you do, DON'T buy from trafficholder, you'll get a ton of shit traffic from sites running installs, full of stolen content or full CJ's.
Finally, there are better boards to network on and get advice from, when it comes to running a TGP. GFY is the biggest adult webmaster board but, unfortunately, it rarely offers any specific expertise on specific business models.
I also think you may need a bit more than 2h/day, at least initially, in order to get the site off the ground. You'll need to fiddle a bit with learning the scripts, tweaking them, making them work together properly, importing galleries, cropping thumbs, etc.
Regardless of which choice you make for your venture, take some time initially and PLAN. Break down the process into minor objectives and set out to achieve them one by one. Remember to be specific about them and in the planning stage write things down as detailed as possible, in terms of how you intend to go about solving each individual issue. If possible, also try to estimate the time each step will take you and at least set a goal for how much it SHOULD take you. Otherwise you can well end up winging it and procrastinating into the next century.