Yes, do use a hair dryer. This is a widely used method and the particulars of how long, how hot, how close, will vary according to specific use; you'll have to experiment. I've used this technique for large carbon fiber decals and it works beautifully. Nothing else really seems to get large decals to lay flat, adhere, and conform to shape quite like the hair dryer with ample application of Micro-sol.
A very cool project. I love seeing these cars built. The version at the link you provided is insane. I can't believe how hard some modelers work. I'm currently working on a Hasegawa Lancia Stratos, which is a great kit.
One thing you didn't mention and that probably goes without saying is this: Don't Cheat! One of my models took second place in its class at a GSL contest but I wasn't there and I didn't enter it in the competition. I was and remain flattered; however, it is a reprehensible act to present someone else's build as one's own work.
My best advice is to use the self-adhesive Bare Metal Foil brand and skip trying to master the application of foil with whatever other adhesive. But if you must, I'd recommend Alene's spray adhesive, which is widely available at hobby, craft, and general big-box stores near everybody.
I'm pleased to see this thread revived after so many years. It is a really cool version of the F40 and I'm still very happy with the result it got with this build. Some of my pictures look really good, too!