Thank you so much Larry!  I really appreciate your help with my setup.  It is such a exciting (and daunting) hobby to enter without any prior experience with trains.  I now have enough knowledge to make some somewhat educated choices!

One question on the transformers, will a 1033 transformer operate whistle and smoke on the train, or will I need a KW or ZW transformer for this functionality?  I'm assuming the transformer operates this, but I also notice some sort of "switch" located behind the smokestack.  Perhaps this operates the heating element?

It seems I will likely go for a KW or ZW at first glance, to allow more growth in the set, but I also see they are quite a bit more expensive (and popular) on ebay.  If I choose a 1033 for the first year or two, I just want to make sure I would at least have full functional capabilities with this one 2055 train engine.

Again, I really appreciate your help.  It's nice to know there is a community out there to offer support and suggestions so my son and I can enjoy this hobby and tradition for years to come. 

Best,
mille395