In the Dec 2008 issue of FSM, Dylan Smith of Canada wrote inquiring about 1/35 model train. The answer failed to mention that MTH/Railking produces 1 gauge railroad rolling stock in 1/32nd scale. They don't have a large selection of products, but for those seeking to incorporate railroad rolling stock into a 1/35 diorama, you might consider this. I recently ordered 3 boxcars to work into a military diorama, and the quality is great. The attention to detail is great. The finish is a gloss but that can be taken care of by weathering processes. The RR boxcars I received are dated in the early 60's but could feasibly be used in 70' and 80's vintage scenes. Many rail cars have a long life span, just like military vehicles.
MTH/Railking (www.railking1gauge.com) does not sell direct. They have an online catalog. They can provide you a dealer name who can order it for you, OR, perhaps your local hobby shop can place an order. Support your local hobby shop if you can.
Hope this helps to Dylan and any other modeler looking in the RR direction.
Happy modeling.
(I posted this in the armor section, but thought that the diorama section needed it too.)