... I made the map by zooming in as close as possible in Google Earth, captured it and pasted a mosaic of the park into PhotoShop. This image is 17280x8500 pixels and 278mb in size. (that took 2 months) I drew colored lines over the track and saved in a separate layer. ...
Don't make it more complicated than necessary. Google Earth is not needed here and not helpful at all.
You already stated the essential thing: Your task is to reuse the track diagram raster image and to blow it up to real scale, to use it as a kind of background texture in Trainz. Using Basemaps as texture carrier objects appears as a typical and straightforward approach.
(Even if you use TransDEM for a more automated method you would still end up with TransDEM's counterpart of Basemaps, called UTM tiles there.)
Have a look at the short original Basemaps tutorial:
http://www.g0akh.f2s.com/Trainz/Basemap_tutorial.html.
Forget about the limit to 9 Basemaps at the moment. We'll solve that later.
Are you confident that you understood the process illustrated in the tutorial? If so, did you identify the main difference between their map and your track diagram? Their map, the British Ordnance Survey topo map shows a 1000m grid, your track diagram does not - yet.
To follow the tutorial you will need those grid lines. Once you have them you then just do what they do.
Now, how do you get those lines? You can draw those lines in any image editor of your liking but first you will have to calculate the distance between 1000m lines in pixels.
Let's take the small track diagram image your linked to in your first post. I hope you have a larger one for your Trainz project. We start with the ruler. The ruler will tell us the size of the track diagram raster image in feet. It's more guesswork than reading but I think the length of the ruler says 500 ft. In pixels I measured 91.
The overall size of the image in pixels is 913 x 478. The ruler is 91 pixels wide and stands for 500ft. How wide in ft is the image? Apply the "Rule of Three": Image width [ft] = 913 px * 500 ft / 91 px. Yields 5016 ft. Image height in ft is 2626, applying the same factor 500/91.
We need the width and height in meters - multiply by 0.3048 - and in real scale - multiply by 8 (because the model scale is 1/8).
Your track diagram in meters has a width of 12231 meters and a height of 6404 meters.
How many pixels per 1000m? Interval = 1000 * 913/12231 = 74.6. Draw a grid line every 75 pixels. That's it.
With TransDEM you wouldn't have to draw the grid lines yourself. You would add that arbitrary coordinate offset, as explained in the reply to Vern yesterday and see the 1000m grid lines as drawn by TransDEM:
As you can see, there will be more than 9 tiles/basemaps. The creator of the original basemaps sees them as temporary objects. Start with the first 9. Do your work in Surveyor for each basemap. Then relocate it to the next position and replace its texture. The other option is to copy the Basemap set several times and assign a new KUID and a new name to each copied basemap.
You will also notice that you will need more white space for the raster image at the right and upper edges to get full 1 sq km tiles there. You can do that in your image editor. You should do that before beginning the pixel measurement.
Final remark: If using TransDEM, it will take about 5-15 minutes from the screenshot above to the point where you can open the route in Surveyor, with all baseboards created and all "basemaps" in place.