Ah, Steve....
Don't give up. Reversing sections are the coolest!
I still think mine would work best.... did you ever try it?
Now, when you add that second set of turnouts you are indeed creating a second reversing section.
I have a dogbone myself, at one end is a reversing loop, and at the other end is a yard with a reversing wye. One MRC module handles the loop and the wye for me quite nicely. The only thing is, if I am running two locos and they are both entering reversing sections at the same time, there is a 50/50 chance I will get a short. This is a real rarity because 1.0 I've got a lot of mainline track bw tween the loop and the wye and b.) I'm on the lookout for that circumstance.
I think what you've playing around with is a flawed concept of what part of your track is the mainline and what parts are the reversing section.
I think what you've got is that little section in the middle you're calling the reversing section, THAT'S the mainline, the giant loops on either side of it are two huge reversing sections.
http://www.the-gauge.com/attachment.php?attachmentid=31495&d=1162172470
First, consider the entire "top" of the sketch. That track, which I've gapped at 1 is nothing more that a long passing siding, and will not, by itself reverse the direction of the train.
Now, if it were my layout, I'd put my gaps at 1,2,3 and 4. 3 is kinda hard to see because the lines that represnt your turnouts are a little tight there. It doesn't really matter if the blue track is the "mainline A" and the red is the "reversing section B" or vice versa. Those are labels and nothing more.
The module C goes in where I've shown. Yellow wires don't show too well on a white background, so I used blue.