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The most important question at your stage is this, what scale will work best with the space I have available? 4 by 8 HO layouts are fun at first, but they get boring quickly. If your space is smaller than this, definitely go N scale. If the location is larger than that required to accommodate a 4 by 8 layout, then HO is a good scale. Next, I am going to make one of those universal statements that I am going to contradict in about three sentences, but here goes. Only buy quality engines, there are no bargains. The engines you buy are going to be with you a lifetime in all possibility, so you want them to last and you want them to run well, and be realistic ("prototypical"). Now of course I am stretching the truth, there are some good bargains just waiting for you, but you had better know what you are doing. Just about every new modeller has been burned by buying something they regretted latter. In fact, I think it is a right of passage into the hobby. But if you see an engine out there calling your name, if you can force yourself, come to a forum and ask advise. There are certainly some bad ones just waiting for you as well as the good ones. And now for the controversial advise. If you know in your heart you are going to be in the hobby a lifetime, then just go DCC. The Digitrax Zephyr is a fine entry level unit that will grow with you and become part of a more complex system if that is how your tastes run lets say ten years from now. There are "starter train sets" in Europe (Marklin) for example that are now coming with a "starter" DCC system. The reason I make this recommendation is this: eventually you will go DCC. If you become like me and my son, after we bought our DCC system, we then had three MRC power packs sitting around not really doing anything (gave one away to a buddy). So you are out of pocket the power packs (although they can be used to run accessories, but so can a cheap $5 power pack), plus the controllers, selectors, etc to block run your train. DCC is not just about running trains without reliance on "blocks" but as decoders come out with new options, you will definitely want some of them. Things like sound, less reliance on track power, cruise control, consisting (MUing), jazzy lights, automatic uncoupling, automatic selection of trurnouts to be thrown when a train comes out of staging or enters a yard, etc. Also when purchasing that new engine, find out how easy it is to put a decoder in it. Some engines are very easy to add a decoder to (they are called "decoder ready"), other engines are used as a torture test to break the enemy down to reveal secrets as they are forced to add a decoder and make it work properly (N scale Kato Mikado's can drive a man to drink).
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