Because the Telemaster doesn't need extremely fast servos, if you are going to run a 2s lipo, I would use a BEC to step that voltage down to about 5v. Your flight pack will last longer and you will still have great flight times. I'm sure you will be able to fly at least 4 full tanks before having to recharge.
Another option is to get a 2s LiFe pack. This is what most of us are running in our nitro heli's. It puts out 6.6v and is a direct connection to the Rx without much worry. However, I"m still thinking about running a BEC to drop that down to 6v stable.
And yes, 700 vs 1100, you will get more flight time with the 1100.