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For a model railroad similar in spirit (I think) that was built out into a startup and now a successful business (by charging visitors and selling merchandise), check out the "Miniatur Wunderland" in Hamburg, Germany.

They build and program many things by themselves. Recently, they completed a very impressive addition: an airport, complete with starting and landing airplanes, cars etc. I listened to an interview with one of the founders, Gerrit Braun, where he says that for the airport alone they wrote several hundred thousand lines of code.

The airport: http://www.youtube.com/watch?v=Qz4NcTnQedo

Camera mounted on train: http://www.youtube.com/watch?v=RBArNAyODLc

More: http://www.youtube.com/user/MiWuLaTV