cycle racing?

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How good is a Claud Butler San Remo for races?

Reguardless of bike, how many hours of cycling per week would you reccommend to be able to do decent in a race?

How much of a difference does aerodynamic clothing make?

Never heard of your bike, so I canno help you there. :o

Where do you intend to race? What country, what category, etc... What type of race (criterium, chrono, uphill, etc).

You will have to give us an idea...

In any event, wherever you are, look up a local club and start riding with them for a while. They will be able to provide you with all the information you need and bring you up to speed on the competitiveness of your local racing circuit, and what it takes to compete...

Have fun!

Yes. Ride with the local club.

How good is a Claud Butler San Remo for races?

Reguardless of bike, how many hours of cycling per week would you reccommend to be able to do decent in a race?

How much of a difference does aerodynamic clothing make?

Your bike'll do you fine for a while - it's not the flashest thing out there but it's good enough. It'll be your legs, lugs and brain that hold you back to start with! As others have said, join a local club and you'll get a better feel for what it takes.
Hours in the saddle? It's quality that counts, not quantity. You could ride all day every day, but if you do it at steady state, low stress, you'll never ever get race fit. Join a club and get stuck in!