Wiring for DCS.

I would isolate the 2 loops and power supplies regardless of DCS. DCS works best with 1 power feed per block. 10-12 sections of track per block. Using 1 brick per TIU channel and 1 TIU channel per track loop would be good, depending on loop size. Each loop could be blocked accordingly.

You should get the DCS O Gauge Companion by forum member Barry B. it is all explained very well in that book. OGR also has a DVD on using DCS.

Lionel makes a fastrack block section track piece, so is this what I would need? And would I put those where my switch track connects my outside track to the inside side track? And this is a dumb question, can I run my trains from one loop to the other loop without any problem?

I haven't looked at a piece of Fastrack for a while, but was thinking there was a fitter piece or something on the switches that had a jumper you just removed to isolate them. I might be all wet here, but that's kind of how I remember them. This might be the block piece you mentioned?  I have a Fastrack book around here somewhere, will see if I can find it tomorrow.

Yes, I would isolate the loops between the switches where the loops connect. You should have no problems running trains between the loops. If you have everything connected that way now, the bricks should be properly phased or you would already have problems.

Found the book, it says the O60 & O72 switches include 3 isolation pieces with the jumpers that are supposed to be part #6-12073, says they are 1-3/8" long. Also included with 22-1/2 deg crossover, and available as replacement part. 

Thanks for the info. If you can find that info on the switches that would be great.

See above, just added the switch stuff.