Rockershovel,
I started building my layout just last June. As with you, I wanted to go as inexpensive as possible, and try to build a nice layout, but as compact as possible (4ft x 8ft). So, I started out with a lot of used 027 track, as well as about six 027 tin hand switches that I got for really cheap at a flea market train shop.
When I was asking design questions, many of the regulars on this board advised me to just go to standard 031 track. It is a bit more expensive when bought used (but not very much at all), is taller in height, looks much more realistic, allows engines to run faster and more smoothly on the curves, and eliminates forever all of the questions and issues of which locomotives and cars will run well on the tracks and switches and which will derail.
Well, I assembled out my all of my 027 on the floor in my desired layout, within the 8ft x 4ft layout board size I wanted, and I soon realized that almost all of the 027 curves could be replaced with 031 curves with little or no problems. So, I started doing that on the floor. When I was done with that, I found that I only had to increase the width and length of the planned table by about 6 inches or so to have the entire layout in standard 031 gauge.
I had plenty of basement space to have a slightly bigger table, so now realizing the wisdom of the board, I went totally to 031 used track. Yea, I lost a little money on trading out my 027 track, but only about $20, and I made up for that by selling the tin 027 switches for more than I paid. Even had I not made up that money, it would have still switched to the 031. You can barely buy a boxcar for $20, and for me, the benefits of 031 vastly outweighed the burdens of O27.
Once I started the actual building of my table, I saw that by just increasing the length and width of the table by an even one foot, I could have the freedom of building a much nicer layout for myself with lots of room for accessories.
My table and track layout are finished now, and I couldn't be happier.
There is nothing wrong per se with 027 track, and many people love it for the nostalgia, compactness, or railroad pieces they already own. But, if you are starting out fresh, or even relatively fresh, I would really consider increasing your table dimensions somewhat and going totally with the 031. I believe it will eliminate a lot of headaches for you.
Mannyrock