Could someone post a link for actual spacing or width needed for track spacing ? I have a 40" shelf and was wondering what curves I can use without scraping the walls ?
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That's going to depend on what locomotives and cars you'll be running on the layout. If you're going to be making a turn on a 40" wide surface, O31 is really the largest curve that will reasonably fit. O36 would "fit", but the track would be right against the wall.
I found most of what I'm looking for with the search function . Rethinking the 40" but if I go much wider I will not be able to reach the back side of my track . I would like to use 036 (because that's what I have) . I want to start running the larger engines . (post war)
Well, I'd consider maybe 42", a couple extra inches will allow the O36 turn and still leave enough clearance to the wall. Fastrack is 3.5" total width, and O36 in Fastrack is 36" center rail to center rail. So, the total width if the O36 curve will be 39.5", that doesn't leave any room between the wall and the track. 42" will allow a couple of inches at the wall and make it possible to run more than a handcar. 
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I'm using older tubular track but I assume it's the same ?
I also have a box full of MTH 042 I could use but that would require 44" ?
I've got just the ticket for you: Marx 034 track. It is the same rail profile as Lionel 027 but gives you more radius than even standard 0 gauge 031. You can only get it used, of course, but there is a LOT of clean, used (some of it barely!) 034 out there. There are switches in the same radius and matching 5-tie straights (both the normal length and longer).
Well, I doubt I'd be jumping all over old Marx track and switches, I think I'd stick with something that's a known quantity. 
Lionel tubular track comes in O31 and O42, no O36 in sight.
Tubular track is measured from the outside rails.
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Yep, the O42 would require about 44" to keep it a couple inches from the wall.
I have used Marx track and switches with great success. They are no different from any used tubular track and just the right size for the OP's need.
You can mix curves to make something in between. Use O-27 profile O-42 track for most of the curve, then use Marx O-34 at the very middle of the curve. Think of the shape of a football.
That's a plan Roy, get the best curve you can in the space.
