Gave up on trying to fix the problem

. Reverted back to an archived version and all is well. Only lost a week or so of additions.......maybe they will be better the second time around

.
TTFN
KC
I ended up doing that at one point myself because of the same problem. That was when I first started using Trainz. Since then I've learned to find the broken track. The process is pretty simple.
1) Follow your track closely in Surveyor and look for any white, not yellow, spline points. As you check the spline points carefully, inspect for a small break between the tracks. This happens sometimes when dragging and laying the tracks particularly if you are using the shift key to keep two parallel splines from connecting together inadvertently.
2) Check road crossings, industries, stations, and other fixed-track items. Sometimes I've forgotten to connect the track to the road crossings! This was quite frustrating until I followed the line carefully. The track was close, but not connected, and the repair took less than 2-seconds to fix. Do the same for interactive industries such as stations and factories because the same thing can happen.
3) Check that your direction markers are pointing in the right direction. The yellow markers should point in the direction you want the train to go. If they're facing the wrong way, the AI driver may or may not overide the marker and will produce this message. These can be the most difficult to find because everything looks okay as far as the track goes.
So having said this, and I know it's too late, keep these tips in mind for future path problems.
John