you can buy a combustion engine (here is the link: http://www.ebay.co.uk/itm/like/391463145678?format...
and you can watch makerj101's videos :
1 2 3 4 5 and 6 the test
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Yes, you can make a working internal combustion engine with stuff bought mostly from hardware store and without a machine shop. I built one. Here's my video if it running. I have a whole series showing how I made it. https://youtu.be/rFdhGh8eG3U
Better you buy one... small IC engine has very complicated design and assembly contains many safety issues. You can get a new IC engine for less than $200.
You could buy a small nitromethane combustion engine that would be suitably sized from a RC Hobbies supplier.
Ouch, thats a pretty tall order there. Combustion engines have very strict tolerances and balances. I dunno if you could get off the shelf items from a hardware store and cobble something like this together. Not without some degree of machining.