This weekend I have fitted the reed switches to the track and glued a small magnet to the underside of the train so I can plot the position of the train on the track. This is so I can switch lights accordingly throughout the lighting sequence (and because its cool! 🙂 ).
Here is a close up of the reed switch in place:
All the cables from the sensors feed back to a single point, with a 12 core cable carrying everything to the USB IO board:
This is the IO board that connects to the PC: