If you are interested in O scale narrow gauge try straight On30(On2-1/2). Don’t worry about everyone saying it is wrong to be inaccurate. The difference in the gauge is not significant enough to change. Saves screwing up good rolling stock and is cheaper.
Use Atlas HO Code 100 track. It is close enough in appearance to duplicate narrow gauge track. The ties are the right width, only 3 inches too close on center and the same length as the 7mm/16.5 tram track sold as On30 by Peco. It is more accurate as narrow gauge track than as HO standard gauge track.
The HO couplers are the correct size and the appearance can be improved.

An On30 layout can be built on a 4x8 easily.

Visit the On30 Pacific Coast Air Line Railway at:
http://www.pacificcoastairlinerr.com/
We are building a railroad on the website and thank you for the 225,000
visits.

Just a thought
Harold