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I tend to also lean towards an around the walls design.  Im not entirely a fan of running in circles (its not my thing), but I understand the usefulness of the concept.  Byron's plan is a good one.  Given that you have a somewhat larger space than Byron's plan calls for, you can either push the plan to the walls to open space, or build it in a 8x10' space of your room, leaving aisles for access on two sides.   That allows you to add that dotted line passing siding, extend the green line (I assume thats a scenic divider) and possibly add a coal tipple (albeit a small one), coal truck dump or small pulpwood yard in the place of the access hole (bottom left side of Byrons drawing). Edit: The suggestion I just made sacrifices the interchange track location.  Re-locating it may or may not be possible.  Possibly move it to the top left corner.
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