Torque is not a reaction of engine spinning. Engine is very much stationary in the frame. (Hopefully...) Torque is caused by propeller spinning.
Actually torque is the combined effect of the rotation of the engine (ok..ok the crankshaft) and the propeller spinning. It is purely newtons law of equal and opposite reaction. So even if there were no propeller, torque would still exist from the rotating crank in the engine. Also, it's not alot of aerodynamics involved. You use rudder or aileron to counter the effect, but it's an inertia problem as applied to the airframe as a whole. True, air adds to the amount of torque due to the air resistance (drag) to propeller movement, but if the propeller were a solid disk, torque would still exist and almost to the same extent as if it were a normal prop (assuming the same mass). The torque from air resistance is what is usually felt mostly during "static" throttle settings. (To put it another way...Hypothetically...If the aircraft were in a vacuum with the engine running, torque and gyroscopic precession would still be there, but SlipStream and P-Factor would not.)
I'm not for sure I explained this right, so please jump in if I really screwed up...
Adverse Yaw is not so much an issue in motored planes, but if you ever fly a glider you will definitely know this one.
Adverse Yaw is a major factor in completing "coordinated" turns. Which during normal flight is not a big concern(unless you want your passengers hurling on you), but in combat situations, making coordinated manuevers could save you that little bit of extra energy to make or break you. Plus, making a hard roll in a slow/low plane without keeping coordinated could easily cause a snap roll into a lawn dart.
You are 100% correct about Yaw Induce Roll.
Terror
PS. I know..I know...an engine won't run in a vacuum....

[This message has been edited by Terror (edited 05-25-2001).]