Well, if you use the AH-scripts, the engine should be on from begining, as there are no turning on procedures yet. The reason for its stop and freezing is that some function(s) doesnt go well, or something is badly defined. The down-screen log says stuff like "cannot find compatible overloaded function" as i see on the image. On the end is the function name, you should compare the AH´s actual script whyte this modified, and look if there isnt a bad file-link direction written (as you hawe made an new folder and renamed the engine prop. files). If you solve one, go on the next and try to reach the point where no such errors are seen in the log (probably will be functional then too). Also check your helis smesh names and if the script has all the parts named corectly in them (so it wont seek model pieces it doesnt have - but should actually write the missing parts in the log too anyway). But you should turn whyte details about aircraft-scripting to ddenn or others (i done just a brief owerlook trough them, im more into the vehicle ones as my model work is done in that direction).
As for the model height, if you use blender, the absolute x, y, z zero position should be the ground, so you should move the whole copter down the grid so that the landing skies are laying on that point. Check too, if some mesh doesnt have its pivot-point beneath the actual model and change it if it is. -- that should do the trick whyte the spawning height (it always worked for me).
The camera position is defined in script too (see the wiki trough for vehicle camera positions - the Shavrov has its camera scripts a little better, as other camera positions are defined too, maybe check that out). Just look at the grid position of the cockpit seat in Blender/3DSMax and define then an approximate position according to it in script. Then the fine-tuning can be done in OT, when playing in the script window whyle in vehicle by reloading the script after small changes in the camera coordinates(mind that it is heading always in y+ vector, so the model has to face that direction too to see up front) ...
As for materials, you can do that part right away, set the glass transparent (in matlib, all the four numbers for it should be way below 1.0 for that) cause it will help much more to set the camera position. Also it has an good psychological effect on you, to have the feeling of sitting in the cockpit while messing whyte scripts around. - doctors advice !
P.S.: The eurocopter looks really nice. Good work on that. Wish you would do the Kamov Kasatka one day.
... And yes, is that Kilimanjaro in the image ?