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Louie, I am also using only Kato track and plan to use it on homasote and do some cookie cutting. I would leave some room, maybe at least 1/8 inch , on either side of the track to attach scenery, trees, signals, etc. I do not plan to use ballast since it can mess up the working of switches and the Kato track does not need it. I do not plan to use white glue and water since the water base will mess up the homasote.
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