1. Okay the engine is 736, which further confirms a O31 right?
Sounds reasonable. I think the 736 was a nice loco.
2. The track I have is rusty, I went to a local hobby shop and they said replace it rather than clean it. Something about connectivity and insulators. Was that just a salesmans pitch or was it the straight scoop?
They're probably right. I dug some old track out of my father's basement this year and I don't know if I can clean it. If I could find similar track (Hornby O) I might replace it.
3. I've got a basic plan in mind, where do I find out about how to do the bench work and radi, and transformers, etc.?
Oh, Boy... look for a couple of magazines: Classic Toy Trains and O Gauge Railroading. They usually cover such things, especially in the run-up to Christmas. The hobby shop should stock some books; bench work and scenery works for all scales.
4. Is there a book of basics, you guys recommend?
Check section 625 in your library. Books are often out of date by the time they're published. For your trains, an older Toy Train book should be good.
5. Is there a point at which you need to have power ampliiers, if the track is too long?
You shouldn't need anything like a power amplifier in any moerately sized layout. What happens is that you lose a bit of current at the rail joints and eventually the train starts to slow down at the far side of the circuit. What you do then is add power feeders every so often along the track. Easiest is a lockon and a larger gauge wire going around the layout from the transformer -- same 2 terminals. Look for threads on Bus wiring for ideas. You only need more power when you add more load: extra cars with lights, operating accessories; extra locomotives.
So many questions so little time!
Thanx,
Dick