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The track in your photo is O27 track that makes a 27" circle.  The newer tracks have the plastic "roadbed", but the rail spacing is the same as O27 and O31 (a heftier tubular track that makes a 31" circle.)  The open-rail O27 and O31 are being phased out by Lionel, but Williams by Bachmann still makes O31 track.

If you are considering building a layout, your choice is to use "classic" track or the new track.  You could get good used classic track at a train meet at a fraction of the cost of new track.

Don't discount your old transformer too quickly.  Is the power cord still flexible, or has it become brittle and cracked?  If there is any sign of cracking, replace the cord before proceeding.  Many of us use Lionel transformers that are over 60 years old.  That 80 watt transformer should be a good match for that locomotive if you have cleaned and lubricated the locomotive.  (All of your rolling stock (cars) should also have the wheels and the axles lubricated.)

Welcome to the fun world of toy trains!!

Dale,

Thanks a million for your help.

Actually, the transformer seems ok (at first glance).  The cord is still flexible too.  However, the wires that go to the track and the piece that connects to the tract (not sure on what that's called) is completely broken and rotted.  Are the wires and that other piece available for purchase?  If so I could give the transformer a try and see if it works.

Gary

Awesome news, I'm going to give it a whirl.  Thanks for the information.

garyganu: you sound REALLY new to this game so I wanted to add to TransRMe's comment "any small gauge wire will work".

I would suggest 18 gauge wire and nothing smaller (wire size is inverse to the number or gauge.  That is, 20 gauge wire is smaller than 18 gauge.  18 gauge is smaller than 16 gauge. etc.)

Make sure to lube that engine too - it will run a zillion times better.  You might be tempted to think you don't have enough power if the train doesn't run well.  That's why you want to grease the gears lightly and put a drop of oil on each wheel/axle.

- walt