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20 gauge wire will work just fine. I use 16 gauge on my portable N-scale layout because it was what I had available. What they are talking about is don't use any wire with a smaller diameter as it won't be able to handle the current in the wire required to run the layout. The smaller the number in wire, the larger the diameter. 10 gauge wire is larger than 16 gauge and will handle more current. I hope that this helps you and good luck with the new layout.
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