Can we call you Gomez? Seriously though, I have not yet released the magic smoke from anything either MTH or Lionel. However, I really gone overboard on protection though, as I got spooked early on about smoking the electronics in the engines. As a friend of mine says, 'anything worth doing is worth over doing'!
I use PH-180s for power with PSX-AC's for protection along with a few TVS diodes here and there for a little added safety, even though the PSX-AC's and my TIU also have spike protection. I think doing as Bmoran4 says above and adding some TVS diodes to your layout might be a good start and possibly help avoid some excess smoking. Here's a link to the most used here on the forum: PTC and TVS - Some Commonly Used Sizes and Part Numbers (from other threads)
If you want to go all out the PSX-AC's are available from Charles Ro or Tony's Train Exchange. Tony's also has a kit for adding the alarm, screw terminals and maybe some other things. Here is a link to the PSX-AC information.
Even with all that I suppose there is a chance that something could still smoke though.