I would echo the advise about turntables...non existant on all but a very small handfull or logging railroads. Most operations used one or two stall shop buildings instead of roundhouses. Many logging railroads lacked any turning facilities at all, which meant that the locomotives would always be facing the same direction.
Marc Reusser has a website that should provide a very healthy dose of inspiration at
http://www.steaminthewoods.com There are quite a few other logging railroad websites out there as well.
As for motive power I would recommend any one of the Bachmann Spectrum steam locomotives- with their 3-truck Shay, 2 truck Climax, and 0-6-0T being the most appropriate choices. You have to be carefull with their Shay in terms of tightness of curves, as the drivelines do tend to come apart on sharp curves. The Rivarossi 2-truck Heisler is a good locomotive and can be had for less than $80 if you look in the right places, but be warned that it scales out a little too big for what it is supposed to represent. There are a lot of other small steam locomotives out there...but you do have to be carefull with them and know what you are buying. If you advance yourself to the 1950's/1960's you could get away with running such locomotives as any one of the small EMD switchers made by various manufacturers, the Baldwin switchers from the likes of Athearn or Bowser/Stewart, any one of the small Fairbanks-Morse units made, etc.
There are a couple of other factors to keep in mind. Most of your commercially available sawmills are way too small to have ever justified a logging railroad to feed them. In the beginning sawmills were smaller affairs that tended to be very portable...as the sawmill would exist in one place just long enough to cut out the surrounding timber before moving on. More often than not the equipment would get moved, sometimes to a new owner, with the old buildings left behind. Logging railroads came into being as sawmills started becoming larger and more sedentary industrial facilities, which led to quite a few logistical considerations...the larger a sawmill ran, the faster it would consume wood, which meant that it would go through the timber immediately available to it in short order, which meant that logs had to be hauled in from ever further distances, which meant that the sawmill had to be large enough to generate enough cash flow to finance the high costs of building and operating logging railroads...and by the turn of the century almost all sawmills fed by logging railroads were huge industrial plants, often covering hundreds of acres of land and employing thousands of people. Very few modelers ever come close to even dreaming about properly modeling that aspect of the business. A far more practical solution is to model only a part of a logging railroad, say a logging camp scene such as what Jim Krause describes. Another possibility is that you could have a camp at one end of your line and a log dump into a lake or river at the other end...this happened quite a bit all over the North American continent...the logging railroad existed to bring the logs from the hills down to the water edge, where the logs would be dumped into the water. The logs would then be rafted together and floated to the sawmill. The last true logging railroad left on the continent today- the Canadian Forest Products railroad on Vancouver Island, British Columbia- works on this principle, with the logs they haul rafted from the northern tip of the island to Canfor's sawmills on the mainland.
Given your space considerations I would recommend HO scale, or possibly even an N-scale layout built around the 2-truck Shay offered by Atlas. Send in for subscriptions to Tall Timber Short Lines (
http://www.osorail.com) and Timber Times (
http://www.timbertimes.com)- both are quarterly publications devoted to the timber industry. See if you can find Railroads in the Woods by John Labbe and Vernon Goe. There are a couple of Yahoo! groups that may be of interest, the 4L list (stands for Loyal Legion of Logged-on Loggers) and the Model Loggers group. And finally, see if you can arrange to take a vacation to somewhere in western Washington around mid June...the annual Northwest Logging Modeling Convention should be happening about then. I believe there is a link to the convention's website from the Oso Publishing homepage.
And lastly, I will put in a shameless plug for my two websites...I have always had a strong interest in the dry side pine operations found in the rain shadow of the Cascade Mountains in northeastern California and Oregon. I have one website about the railroads associated with the old company timber town of McCloud, CA, at
http://www.trainweb.org/mccloudrails and another site featuring the railroads of Oregon's high desert region at
http://www.trainweb.org/highdesertrails On the High Desert Rails page be sure to check out the pages on the Condon Kinzua & Southern and Big Creek & Telocaset operations...two fine examples of small operations in the Pacific Northwest.
Jeff Moore
Elko, NV