The only time I have ever used a 2 stage regulator is when using liquid oxygen, it is needed to keep the regulator from freezing up. A regulator with 2 dials, one for tank pressure and one for delivery pressure, is what is commonly used, and usually a couple hundred dollars cheaper than a 2 stage regulator. Gauge size is a personal preference. I use regs with 2 inch dials so I can read them from 6 feet away.
By the way most folks use an acetylene regulator for controlling the propane flow. Propane won't melt the regulator.
But you do need to use "Type T" hose for propane because propane will degrade acetylene grade hoses causing your torch to get gummed up and possible leaks.
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