A flywheel will not be a good thing for a 25 foot drag race. What you want is maximum launch power, least weight possible, and the most weight possible over the drive wheels. If you go with rear drive, you may want to consider a wheelie bar, which can be as simple as a few traingles of matchsticks.
You want as much initial power as possible, but you want to provide power for as much of the race as possible. Being the mad scinetist that I am, I made a primitive two-speed transmission for my mousetrap car out of some gears and springs from the local hobby shop.
Rear-drive will be the most effective, as long as you test it enough that you can correct any curve in its path.
I'll post more when I have time.
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