Justin,
That wooden railway system is one that we picked up from Wal-mart for like $40. It's HUGE! The table is 37" x 57". The quality of the track isn't as nice as on the Brio sets, but it works just fine. It came with three steam locomotives and a bunch of rolling stock, as well as trees, people and some buildings. The turntable works, it has a drawbridge, a signal box, plus lots of other visual features. Not bad for the money!
His grandma gave him some Thomas videos for Christmas that had the wooden engines. So in addition to those that came with the set, he also has Thomas, Percy and Toby. He's a very happy engineer!
-Rory