I've never thought of it as applying to model railroading, at all, except that a model engineer may make a model of a piece of railraod equipment, locomotives being a popular subject for modeling.
Strictly speaking, I'd define a "model engineer" as someone who builds a model -- typically scale, but could be full size, I suppose -- of a prototype "thing."
[This message has been edited by SGW (edited 01-10-2004).]
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