When you say it trips the switch, do you mean the circuit breaker in the transformer opens?
All the green light means is that the DCS itself is powered.
You can't have too much track in the area you describe. You say it's working ok now. One of the track sections you removed may be shorted.
You say a lighted car trips the switch. Is this after you removed the track as you described in your 2nd papragraph?
What transformer are you using? Is this your only loco? If not, how do the others behave.
AT this point, I suspect the problem may be that your transformer breaker is cutting off power to the entire layout. But why? Check the track, and also the wheels & pickup rollers carefully to make sure there isn't something metallic shorting the center rail. What lighted cars do you have?
I'm not trying to cross-examine, only trying to get some possibly relevant facts to zero in on a cause.