I’d go engineered over solid every time…especially if you’re having a go yourself. The machining is much better and the floor is far less susceptible to outside influences…moisture from sub-floor, humidity and temperature differences from above. You’re only ever going to sand down as far as the tongue and groove anyway, so if you’re thinking of how many re-finishes it’ll need (which I guarantee you, you’ll never do anyway), what’s the difference?
You “can” float an engineered floor if you really want, but it’s not the preferred fixing method for me – sorry. I’ll always fix to the sub-floor, be it by nailing or gluing.
You should never glue solid floors along the t&g for the correct reasons given by trouty above.
OP, I’d be concerned about the bitumen layer on the floor – and I’d seriously think about paying someone competent to latex the floor for you. Then, you should apply a liquid DPM and you can go ahead and lay your floor whatever way you want. I’ve never used the self-adhesive underlay – essentially, it’s a floating floor which I don’t like.
As for finishes, yep, if you want a wax-oil finish, then you can’t really beat OS. petrieboy, have a look at Bona finishes (Mega or pref Traffic, if you have a dog) if you fancy a water-based lacquer – they’re the best on the market and used by all the pros. I’m afraid, that with a dog, your floor will be marked…an oiled finish will age and distress more naturally though.
Any more questions, fire away, I’m all ears.