Hi Eric,
Both sets will come with enough track to make a loop, but the cargo train will come with more.
The power function controller can run up to 8 different trains at different speeds. There are 4 different frequencies with two dials.
Both sets are compatible with lights, but you will have to buy them separately. ~$7 USD
The tracks are plastic and the trains run on motors so any track layout you want will work... Even something as simple as a straight line.
Normally, you would put the lights on a different conrol knob so that you can power the light and motor separately.
Cheers
Jonathan