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What system are you planning on using to run this layout?  Is it a traditional AC or DC or is it some sort of command control?   Do you plan on having two trains running at once?  Are you wanting some switching of industries or running in circles.  Trying to get a feel for what you want out of the layout.  O is a good place to start with kids, they can put their hands on it without breaking too much.   Another way to break up the circle is to divide the scene with buildings or backdrop.
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