Hi;
Here are some results to share. My last update reported success with overall Arduino software control and the relay/diode approach for speed and bell control. The nagging problems where erratic behavior of the hall sensors and a non functional horn.
The hall sensor problem was traced to noise from nearby O27 switches. This took days and many test scenarios to pin down but the result was that any time a lighted car passed through a switch on the inner loop, there was a good chance a hall sensor on the outer loop would change state. Keep in mind that there are no physical connections between these loops. Testing showed that even though the hall sensor changed state it was not due to a nearby magnetic field or any signal carried by the rails, but rather from noise picked up by the sensor wires and fed back into the sensor changing its state. Lots of wire rerouting and isolation has cleared up all the hall sensor problems.
The horn fix was something I found by accident. So I'm not a big fan of the solution but it was the only approach that worked after testing many different scenarios. Instead of jumping diodes on the horn side of the home made controller, it was necessary to momentarily (1/3 sec) interrupt the bell side completely. This triggers the horn (remember from the video its an older sound commander board) for about a second and can be repeated as needed.
So the end result is that this Christmas layout is fully functional, fun to watch and has taught me a lot that will go into the design of a larger permanent layout. Also, the Arduino C++ code is breadboard tested for the future layout with dynamic routing of multiple trains based on block availability and switch control.
Thanks,
John