This is still being worked on -- slowly. I've been held up by an uncooperative PC. So far, I'm not thrilled with Windows 7. I think I found the source of the issue (something to do with my Video driver and how Win7 handles memory). I've reinstalled my OS for the 3rd time and I think I have the problem licked.
Luckily, everything that I've worked on so far was backed up.
I have the texture near complete for the Budd M-3 cab. The handle is drawn. I want to add a few gadgets (windshield wiper motor, and some switches) and then start building the train.dat and config files. I hope to have the train complete before the weather breaks.
I've also begun fiddling around with the exterior texture. I'd like to have the exterior and cab done before spring, but I think just the cab is more realistic at this point. Once the weather warms up I'll be spending much less time on the PC so development will be fairly slow until next fall.