You need to really start all over with your drive system
500 RPM's will get you nowwhere really slowly!
First off are you sure that that ship ran a two bladed prop? I suspect that it ran a three bladed prop. In the size you are running I would look at a 5cm three bladed prop.
I always and highly recommend the use of an ESC. This will allow you the ability to control your speed for those important manouvering competitions.
Last but the most important, loose the motor that you are using. With a boat that size I would suspect that you need a minimum of 2000 RPM's under load to get any head way if you run up against a breeze. I think that if you can find a motor like that listed on E Bay, item #2567071151 you will do well.
If you are trying to save money you can for go the ESC and make your self a manual speed control using a standard servo and three to four micro switches. If you need a picture of that I can post one for you.
So yank out that power sucking motor you placed in the boat and get a more efficient motor with somewhere around 5000 RPM's.
PS: Do not even bother trying to pitch the blades on the prop you have, you will not be able to enough speed out of that motor to make any difference.
Ask Umi what happens when slow boat meets slight breeze. Unless you have a few colas and lunch with you it is a long wait until that boat makes it back to the harbor