Hi snowman
The trowel size depends on the size of tile you're putting on the wall. If its a 8x10 12x12 or larger, then you're going to need at least 1/4 to 1/2 notch. If you're putting on 4x4, 6x6, 6x8 you can use a v-notch trowel. Remember the bigger the tile the bigger the notch.
I wouldn't recommend a mastic type glue for any tile over 8x10, Reasons for this are: If your putting tile over cement board the glue will dry approximately

one inch around the outside of the tile and will leave the center wet. If you're applying the tile to green board you'll be ok. If its a larger tile
I recommend thin set. Also patch any of the joints between the wall board. Again I recommend thin set. I dont recommend using drywall paper tape, If you can, apply the mesh tape and spread the thin set patch over the tape. Remember to make the patch as smooth as possible or the corners of your tile will be dancing. This will take care of any open spaces behind the tile thus stopping the grout from cracking. I hope this will help.