Just for clarification: my dog bone layout is going to be divided into two DCC power sub-sections protected by two Digitrax PM42 short circuit relays. Therefore, it is necessary for me to double gap each set of rails to isolate each section from the other...correct?
Yes.
Further, is it correct that the Digitrax booster DB150 puts out both AC and DC waves to the rails?
Not really. The DCC signal is in a way an AC signal, but it is not as sine wave as 'normal' AC is. The rails alternate between plus voltage and ground, with one always high and one always low. Normally the total time for each state is the same, this is why a DC loco hums, it is switching direction quickly enough back and forth that it never goes anywhere. Now, if you have a system that allows operation of a single DC loco (such as digitrax), when this is selected the pulses in one direction or the other are stretched, so that the train can move.
If you really want to know more, you can find it here: http://www.nmra.org/standards/DCC/standards_rps/S-91-2004-07.pdf
Thanks fellas
Eric