The speaker in the store here will work fine with that. They came with what I believe was a 1/2watt, 8ohm speaker originally, and will work with any 8ohm speaker with 1/2watt or better rating. As far as batteries go, those boards can handle up to 6volts, so yoiu can use pretty much anything you want. A single 3.7v Li-Ion will work, along with 3 or four NiMH or alkaline. The best way to determine your battery source is to look at what you need for your led, and how you plan to drive it.
to get power to the board, you'll have to open the case. The wires are simple....red is the battery and speaker positive, black is the battery negative, and brown is the speaker negative. The blue wire on the clash sensor needs to be attached to the led string positive, which on that board is the purple wire in the bundle hanging out the end of the case. I have an old diagram I made about about four years ago for one of these boards:
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