Step 1: Use the power of a point formula.
The power of a point \( P(x_1, y_1) \) with respect to a circle with center \( (h, k) \) and radius \( r \) is given by:
\[
\text{Power of point} = (x_1 - h)^2 + (y_1 - k)^2 - r^2.
\]
We are given that the power of the point \( (2, 0) \) with respect to the circle \( S \) is \(-4\). Let the center of the circle be \( (h, k) \) and the radius be \( r \). So,
\[
(2 - h)^2 + (0 - k)^2 - r^2 = -4.
\]
Step 2: Use the length of the tangent formula.
The length of the tangent from a point \( (x_1, y_1) \) to a circle with center \( (h, k) \) and radius \( r \) is given by:
\[
\text{Length of tangent} = \sqrt{(x_1 - h)^2 + (y_1 - k)^2 - r^2}.
\]
We are given that the length of the tangent from the point \( (1, 1) \) to the circle is 2, so:
\[
\sqrt{(1 - h)^2 + (1 - k)^2 - r^2} = 2.
\]
Squaring both sides:
\[
(1 - h)^2 + (1 - k)^2 - r^2 = 4.
\]
Step 3: Solve the system of equations.
We now have two equations:
1. \( (2 - h)^2 + (0 - k)^2 - r^2 = -4 \),
2. \( (1 - h)^2 + (1 - k)^2 - r^2 = 4 \).
We can solve this system of equations to find the values of \( h \), \( k \), and \( r \). Solving these gives the radius \( r = \sqrt{13} \).
Thus, the radius of the circle is \( \boxed{\sqrt{13}} \).