Well, i've decided to add a passing track in front of the yard. the switch leading into the interchange has been moved way back, and now trains can pass around to the other side to move things in and out. Previously, if a train wanted to put cars on the interchange, it would have to use the very small run around on the other side of the layout, and it just did not look realistic.
It also helps with the yard some, since now its a bit easier to rearrange trains.
this will also help in the future if i want to run trains onto my layout from an addition, since this way, i can move more easily around trains. Its also a good passing track if i want to run extra trains.
there is a third advantage, in that it also passes part of my station there. This means that maybe i could try a "light Rail" commuter like IHC's LRV that goes around the inside loop of my layout. I've even considered adding more switches so that the out loop can also go into the passing track and there fore use the other side of the station. The only problem there is that the radius will probably get tighter then the commuter cars can handle, but then again, i've coaxed some of them onto 18" curves, so they might fit for a small section of 18-20" tracks instead of the preferred 22".
So far the only big trouble i've had is that on one end near the yard entrance, i cannot get the switches to line the track up. I'm thinking that the only solution is to get an unfortunately expensive peco curved switch, or pull up the diamond on the outer oval and replace it with one that has an angle that better fits the situation, although i want to avoid pulling up cork.
here is a diagram. what is in red is what i am doing (the tracks have been pulled up or are being fitted, and cork is ready to go) The blue is something i'm considering if i can figure what turnouts would work there.