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I don't think you'll ever get a model railroad much smaller than this one, claimed to be 1:35,200 scale!
I'm sure there'll be someone here who's up to the challenge?
Okay now it does say smallest "working" layout, that may be up for debate? (define working versus operating?)
Pretty clever thinking on his part. It's not a model railroad any more than the little trains that run around a Christmas mountain thing you can buy at Walmart but it sure would neat inside an HO scale hobby shop window.