Since you are such a noob to all this electronics jazz, I would definately suggest getting a hub motor kit. You want to spend more time riding than fixing right? There are many issues with chain drives:
How to mount the motor so it is solid
Where to mount the motor so it is not in my pedal stroke
How to mount the motor so the chainline clears the seatstay and chainstay
How to fit a sprocket to the motor shaft
How to make sure the motor freewheels while it is off
How to attach a rear sprocket to the rear wheel
How to tension the chain
Which size sprockets to use
Why is my motor getting so hot
Why didn't I just get a Hub motor!!!
The treadmill motor wouldn't be too bad an option to start with since it is free. Your voltage is the determining factor in motor speed, so at so 48 volts it is going to be turning at half it's normal speed, which might not necessarily be too bad. If the motor spins too fast you will have problems with gear down to the rear wheel. You can also buy brushed controllers for relatively cheap since they are fairly simple devices. Your batteries are a concern to me, you should look into getting some Ebay PING batteries, the chemistry is LiFePo4. You can also use tool batteries like the 28 volt Milwaukee, or Bosch, or even Dewalt.
Good luck, sick bike parts has lots of good adapters for ebike conversions using an external motor.