I think you have the DCS O Gauge Companion, right? Follow Barry's wiring guide lines and you will have no problems with your DCS.
Your layout is something like mine in the fact you basically have two loops. I would isolate the 2 loops and use a different TIU channel for each, although I think one channel would probably be fine also. I just used two because they were there. I used the fixed channels and powered my TIU separately with a Z-500 left over from a set. I have two Lionel PH-180's for track power, one per channel. Accessories & switches powered separately.
One block should be a certain number of track pieces as stated in the book (forget how many it was?). I think fewer is fine, more is pushing it. The power should feed the middle of the block. Run your power from transformer to a terminal strip and then feed your blocks. Try to locate the terminal strips where all the block feeds will be a similar length (if not possible, don't worry too much about this one). Run a power and common to each block feed and connect to the track at the same place only on the different rails.
My terminal strips didn't get centrally located and everything works just fine here. Layout is only 6'x16' though. I only connected the commons to one rail (same rail all the way around each loop). This left me one to use as isolated rail control for crossing gates, lights etc. At least that was the plan. Haven't had any trouble so far with only one common rail.
I isolated the loops where the switches met up with each other. I only isolated the center rail. I used OGR wire, #14 to the terminal strips and #16 to the blocks. If Barry's book contradicts anything I have said, go with the book. I think I followed it pretty closely though, at least tried to anyway and everything is working better than it ever did before. I added Legacy a couple of months ago and it is working perfectly as well.