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I think if you want lights, sound and smoke you'll have to look at HO or larger. I would recommend you take a look at G-scale - these operate on 45mm gauge track and are designed to be used outdoors though indoor layouts are possible - you do need plenty of room though! Prices aren't all that different to high-end HO locos, especially if you compare BLI steamers to LGB ones. If you have the space and can afford to buy it G is definitely worth investigating. Better-known brands include Aristocraft and LGB - LGB mainly make European equipment but they do offer a few American items such as an F7 A/B, a set of streamlined passenger cars and assorted freight cars. The great thing about LGB is that all their stock will handle their 1st-radius curves as provided in starter sets, so you won't have to buy new track to run new equipment (though more gentle curves do look better with larger locos). Aristocraft also make great models though they need larger-radius curves, not a problem in a garden but tricky indoors!
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