According to the comments, it was caused by a track gauge issue (in this case, it may have been due to the gap for the flange, rather than the actual track gauge).
As a note, this happened in 1988 as part of the AusSteam88 festivities (it was actually the 'farewell' tour for 4472 'Flying Scotsman' when it was leaving Victoria for Perth IIRC).
A rather nice video of the run here:
http://www.youtube.com/watch?feature=endscreen&v=8PP01Ci2E5Y&NR=1
There were some rather interesting events during this run. Examples being that one of the 'R' class locos (R761, the one in the middle in the videos, and the one that derailed) actually ran 'wrong line' the whole way except for the single track into Seymour and in Suburban Melbourne... No signals for most of that run once it left the suburban area, till that single track section IIRC...
I'm lead to believe that the driver of one of the R's and the driver of 4472 shook hands on the move during that run...
Of course, not forgetting the line up later on, using some dual gauge track, to 'triple head' 4472, R761, and R707... The two R's being broad gauge locos :hehe: