Thats the neat thing about modulating a signal.  You can modulate it so 
 that noise cannot immitate it, therefore, the receiver won't be confused.
 And there are filters.  It's worth a shot in my opinion.  And besides,
 whats to say that the same noise, if any, wouldn't interfere with RF too.
 Just a thought.  I had planned to use this method with my brother-in-laws 
 HO trains, but he moved and I didn't get a chance to get it all together 
 before he moved.

                                               Regards,

                                                 Jim


>>  Why don't you build a small transmitter operating at say 200Khz
>> or so and capacitively couple the modulated signal to the rails
> 
> That thought occured to me initially but I wondered about the amount of
> electrical noise from the motor(s) going back on to the track
> 
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