Bill: you are definitely going to Model train heaven for this effort. Being a Torontonian the PCC street car brought back a lot of fond memories. The street car even looks like its in TTC colours.
Dave

Kadee has a handy little video on there site showing you how its done, http://www.kadee.com/htmbord/videos.htm I have used there delayed magnet for 30 years with no problems, and love it.

Your choice is very limited in HO if you want smoke sound and DCC. The only company I know of that offers it is Broadway Limited Imports in there paragon 2 series. They have a ATSR 2-10-2 and a PRR I1SA Decapod with smoke. I have 6 BLIs and all without smoke as its a usless option.

http://www.broadway-limited.com/paragon2-3.aspx

Because the passenger cars you have are British Rail Mk1 coaches in 00 scale you will have to do searchs for English model rail suppliers in North America or in England. I added lights to my sons MK 1s with a few LEDs, 9 volt battery and a micro switch under the body. They will last for ever and there is plenty of room in the coach  for the battery and the extra weight helps.

Unfortunately, nothing in those old Bachman Civil war sets were accurate to the Civil war period including the track and turnouts. The 1870s engines were over scale and the rolling stock was also too modern.

Hi Dave:  Since all the turnouts are wired to a

Since all the turnouts are wired to a common power source can I use Capactor Discharge System to move them all?  And what size capacitor.
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The CD device goes between the power supply and the switches so that when you press the switch the CD discharges and activates the turnout. If you want to activate more than one turnout at a time they must be attached to the same switch. A CD with 4700 microfarad 50 volt Cap shown be able to handle 2 turnouts at once with a short recycle time.
Dave

Hi Joe: you need Capacitor Discharge Power source to properly switch Turnouts or several at once. A CD will give you the oomph to throw the turnouit with out danger of burning out the coils. I have used them for years on all my turnouts. Here are 2 web sites on how to make them or you can buy them pre-made. http://home.cogeco.ca/~rpaisley4/CDPSU.html or http://www.awrr.com/cdsupply.html

Dave

If Its from Canada then it is bilingual!

Dave

To Isolate a section of track-gap one or both rails, I prefer using a dremil tool rather than plastic rail connectors and run a feeder to the isolated section with a SPST (ON/OFF) switch in line.

Dave

The Hornby Power Track Connecting Clip is not a plug. It slides under the track to make contact with the bottom of the rail. If there is not enough room between the plastic roadbed and the rail it will not fit. My guess it will not fit. Its much easier to splice or use Atlas terminal connectors and splice into them.

Dave

As long as the Hornby controller is outputting 12 to 17 volts dc then the type of track is irrelevant. It just 2 strips of metal. Hornby controllers have a special plug that plugs into the Hornby track power clip. You will need to cut that plug off and splice it into the Bachmann power connection.

Dave

Hi Mike: Your only option for a low cost Royal Hudson is an old Presidents Choice Set issue a few years back. It had a farely accurate version of Bullet Nose Betty #6060 and the tender was wrong but for $100 it was a good deal. The bad news is that they are now very hard to find now. I wished I had picked one up when they were issued. Your other option is $1200 brass.

Dave

Hi Hud: The current Spectrum are DCC equiped and if you are running on DC
that would explain the high start voltage. I just picked up a Bachmann 2-8-0
recently at a train show and since I am a DC ludite I had to remove the decoder and fashion my own shorting plug to replace it so its start voltage would be the same as my other 2 Consuls. I used short lengths of solid copper wire in the plug. The clicking sound are the brass wippers on the front wheels rubbing and if they are not making proper contact this would explain the Jerking. On all my Consuls I have had to remove the bottom plate and bend out the wipers a little to make better contact especially
on curves. Also make sure your wheels and track are clean.
Dave

The powder is simulated coal cinders which would cover the tender deck in real life.

Dave

The best thing to do is go to a Model Train shop and buy an HO scale ruler. It will save you a lot of time and will be more accurate. I couldn't  live without mine.

Dave