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I recently decided to make my first real layout. I have a small area and I'm using my childhood Marx sets. I'd like to add a couple of Lionel locos, the 1666 or similar variation comes to mind,  but what modern made Berkshire or 2nd generation diesel should I look for which won't dwarf my rolling stock?

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I will second the Atlas Industrial Rail 4-4-2. I run it with Marx 6 inch cars.

 

The old K-Line 4-6-2 that utilized the Marx 333 shell is also a great choice, especially for pulling Marx cars. It has that classic Marx look, a decent size can motor, a "mature" gear ratio, and will pull anything you can put behind it.

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