Doug, as for trains you can run off our steam engine generators, I found Bachmann N scale sets run great off my Jensen 51 replica which has a DC stepper motor built in that makes ample power to run several accessories at the same time. The Blue Thunder generator often mentioned on here uses the same stepper motor setup.
Amazon sells the Bachmann sets...typical set with engine, four cars and track will run about $110 delivered. I once tried to get one of Karsten's train sets, but initially thought he wanted too much $$$...later they were simply unavailable. The N scale works perfectly and sitting on the track it stands about 1 inch tall. I love mine. You can also get more rolling stock easily. Just don't match Bachmann and Kato N scale cars, their couplers don't work well together.
Roger