I have had fantastic luck with products from a company called Logic Rail Technologies:
http://www.logicrailtech.com/
They make crossing and signal systems. Now, I use the photoelectric type, and I find even with moderate room lighting I have no problems. That's even with my sensors buried in ballast. When I use the layout lighting (48" flourescent tubes) it works as well as just having the single room light fixture on.
Don't discount the photocells yet; I find they make wiring a thousand times easier, they're hard to see even in N scale track, and they work reliably. Here's how I install them for my signal system on my layout:
I added 4 Logic Rail Technologies signal animators to the mainline position light signals; two at LEW tower and two at M tower. The product description from the manufacturer's website (http://www.logicrailtech.com/) tells it all:
"When the train covers the photocell (included) the signal turns red. When the train clears the photocell the signal turns yellow after a delay (10 or 30 seconds, selectable). After another delay the signal turns green."
Of course, on the Pennsy we don't use red/yellow/green, but we use position lights. That's OK, because the SAD-3 does bulb-style position lighting such as the NJ International signals I used! Even better is that they will even support the two horizontal red-style absolute stop aspects such as were installed on the Pennsy after World War II and I've used at Lewisport. They require no special track wiring; in fact, they operate independent of the track. No block wiring necessary! I selected the 10 second delay.
Click on the images to enlarge:
They come in neat little boxes with everything you need but wire.
Tough decision... You're going to have to drill through the layout to mount the photocell: 
I soldered extra wire to the photocell and covered it with shrink tubing, since my layout base is over 3" thick (foam plus door).
There! All done! Well, not quite... We still need to mount and wire the circuit board... 
The wiring diagram included with the instructions is very clear. Clearer than my layout wiring, anyway... The gray 14 AWG bus wires are my signal bus. They run off the old Tech II power pack you see there. I use the DC throttle to control the signal brightness. This avoids the need for resistors. Here you see (among other stuff like track bus, cab bus, signal wires, etc.) the two SAD-3 boards for the East Mifflin signals.
Now, we're truly done. See? A little ballast and weathering, and you hardly notice the photocell at all!

The result? Happy railroaders, who now feel safer that the signals actually indicate track conditions ahead! Here my son Jake takes the TT-1 TrucTrain through LEW Interlocking with confidence, having been given a clear home signal:

Wanna see how they work? Here are two videos (link to YouTube):
M Tower
LEW Tower