Is a "Block System Possible!!!!!

yes a block system is possible. the question is do you want it manually operated or automatically operated?

From your dogbone design, I see at least 3 blocks....

1.  each end loop is a block
2. the straight section is the third block[ could be more depending on how long your trains are. For 40' of straight, that can easliy be two blocks!

Yes!!!!!!!!

I d say you would have to divide the 2 loops exactly in half. So 2 engines can fit in the loop. top half, bottom half.  Hi Low signal before the switches from the straight away and a signal  at half way in  loop. 

I want the blocks automatic. I With the trains running both ways would a block work on the straight away? If both engines have to fit in the loop I would be unable to run a long trains!!

You need another siding if you want to run 2 trains .If only one can fit in each loop how can they pass or even follow each other. I must be missing something.

I'm interested in this one myself.  I would like to share a reverse loop on each end with multiple lines running into both loops.  so in my case, there would be multiple "shared" track as each lane "switches" to the loop.

Even if you never use their system Dallee Electronics has a downloadable manual that uses their block detection system, but the explanation of how blocks work is excellent.  Its a really big PDF file (4mb) so don't be surprised.  The link to the Wireing Guide is towards the bottom of the page.  Russ

http://www.dallee.com/catalog_download.htm

You have found the fatal flaw!!! There is only one block, because that design can only handle one train. A passing siding makes for a very fun layout with great automation potential.