The encumb. ratings effect the controlling stats for HAM not the HAM itself. So if you have a jacket that is 102 hlth 56 action and 32 mind what that will do is remove 102 from your effective strength and Constitution, 56 from Quickness and Action and 32 for Focus and Willpower. As CellieB said this will mean you regain your Ham quicker but it also means that you spend more of it with specials. A higher strength , quickness or focus and you use less of the corresponding HAM stat. Lower it and it will have the opposite effect.
So it's a balancing act to get the best protection you can for the least amount of encumberance.
Armour types;
Chitin - All around average. Not great protection. Better Kinetic than others but is also a bit harsh on penalties compared to what it provides.
Bone - Good Energy protection. NO kinetec protection. Not good for a melee.
Mabari - Good Kinetic. No energy. A decent set of Mabari armour is good for a melee when starting out. Fairly cheap, you can often get decent sets on the Bazaar. Low encumberance but the lack of Energy protection makes you vulnerable to range attacks.
Ubese - Brawlers best friend Hi kinetic (Adv Layers will have 70%+ kinetic) Other protection is not that great (normally 15-20) but the penalties are not that severe considering what it offers.
You will need to find a armour smith for this, decent sets are rarely found on the bazaar.
Composite - Solid protection alround. 50%+ Heavy on the encumberance (unsurprisingly) Without some heavy buffs I doubt anyone can wear a full set of the stuff.
Not sure if there is anything above (adv)Composite armour, I haven't seen it if there is. There is also padded armour but I haven't actually seen any items of this stuff worth talking about. Someone else might know differently.
Another thing to look for is Bio Engineered clothing. You won't be buying this just yet but this can help aid your character later on.
As for race, go for a Twil'ek brawler. Too many just play entertainers, be different. If you like the Twi'lek race then Run with it.
Best race for brawler is probably Trando' as they get a lot of bonuses. Rodians also get some melee bonuses, 1handed I think.
I play a Human, if I was going to number crunch then Trando would be the way to go.
I couldn't say if you would get your **** kicked by other races or not because I haven't fought anyone equal to me that I know of. I've lost duels but to TKM and won plenty but to mostly opponents that shouldn't have tried it. Until you reach master of your chosen combat style you never really know whether you're playing on a level field to be able to blame race for the outcome. The title Novice covers a huge skill range for the elite professions and until you make Master in the profession there'll be no badge to say what skills you have.
One last thing. The major armour locations wear out fast from getting hit more. You will have to look for someone to repair the items and that doesn't always come cheap. Always be on the look out for a spare set of buy one to start with.
I let my first set of Ubese legs and Jacket get ruined and fought for ages without any to replace them. Against single opponents armour is not so important, against multiple you can end up going down pretty fast.