Yes Ken,
Size variations are a total and absolute mess.
First, based on your post, absolutely stay away from any car that says its 1/48 scale. They are gigantic compared to what you are used to. MTH has many cars that clearly marked 1/48 scale. Although they are beautiful, they are not for you (or me).
Second, sort out the size of box cars, tank cars, gondolas and flat cars that you like the best, measure their length to an 1/8th of an inch, and then stick to new/used cars that are very close to those measurements. I have found that 10 1/4" to 11 1/8th" are what looks best for me. Of course, most cabooses are shorter than this, but this is fine as long as they aren't the 1/48 scale.
And then get rid of all of your other cars. If you don't, then you will be tripping over them, packing them, unpacking them, etc. for years to come.
Finally, be really careful of how you buy new or used cars on the internet. Most of the listings show beautiful pictures, but contain no true measurements. If you can't get that info from the seller, or another source, then don't buy it.
Mike is correct that what you are looking for is called "traditional size" cars. And, happily , there are tons of these around new and used from the 1980 through 2010 era. Both cars and engines. (I am not sure, but I think the engines of this era are called "conventional" to distinguish them from the post-war stuff.
Be sure your engine has a "can motor" and if possible, try to get them with dual can motors and flyweel actions (so that they don't abruptly stop running when you turn off the throttle, but instead roll to a stop!)
The next smaller size is often referred to as toy size, which came in the smallest and cheapest train sets. These are usually easy to spot, but the lines can get blurred sometimes.
Since you aren't going to run 1/48 scale cars, you will need to stay away from the big beautiful locomotives, such as Hudsons, since they will look ridiculous pulling your smaller cars.
If you are looking for a great small diesel, take a look at the Williams-Bachman 44-ton switcher! You can buy these brand- new for about $150 to $200. Two motors, diesel sounds, horn, bell and a really strong puller. The yellow Union Pacific has a great paint job. In my opinion, the greatest bargain out there.
Mannyrock