Sure. The purpose of the terminal block is to distribute power to multiple track feeder wire pairs (or lock-ons if you're going for the post-war look).
From the transformer, a pair of wires runs to the terminal block. From the terminal block, a pair of wires goes to each track (either feeder wires or a lock-on).
Each terminal block connected to a separate tap on a transformer makes up a power district.
If you are running 2 trains conventionally on separate loops of track, then just wire each loop of track to the separate taps of the KW (A & B).
If you have a large layout or run multiple trains with heavy power requirements under Command Control (TMCC) on the same track, you may want to have multiple power districts on the same loop. To do that, you:
- Divide the layout into 2 or more sections, each long enough to hold a typical train you run (2 dual-motored locomotives with 4-8 lighted passenger cars; 5-12 freight cars with lighted caboose).
- Put an insulated fiber pin in the center rail between the power districts.
- Connect each power district to a separate transformer tap using the terminal block scheme described above.
- Set each transformer to the exact same power setting. The Lionel KW supports 2 power districts. Alternatively, you can use 135-watt or 180-watt Lionel PowerHouses. Those don't have handles, but supply constant power.
Hope that helps,
George