Its noise from the motor and the pickups that is causing it to reset. A
few years ago I was designing a decoder for the Marklin-Motorola
protocol and found that the PICs were a bit more noise immune than the
AVRs.

Also because of the noise a 7805 almost never worked. But a zener in
series with a resistor and a cap across the zener for filtering worked
without a problem. But in my case the supply voltage on the track was
more or less constant.

Happy Holidays.

Shahid

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