Ben there, done that, loved it!
I've stayed at the Red Caboose three times now. Each time the accommodations varied, largely because each caboose is unique. One of the 3 times the caboose wasn't as nice as we liked and the owner moved us right away.
I LOVE the location - right in the heart of Amish country and on the railroad tracks. Trains go by often and you hear the gentle 'clip clop' of Amish buggys all day and evening. Its fun to watch them and you can easily imagine yourself transported back to the 1850's, when life was simpler. The property is surrounded by Amish farms and you can see them doing nearly everything the same way it was done 150 years ago.
I enjoyed their restaurant - it's diner food, simple and tasty. While there is no pool, telephones or Internet access there is a fun petting zoo, 3 small playgrounds, buggy rides, pony rides, an observation tower and a zillion nearby attractions including the Strasburg railroad and the PA Railroad Museum.
This property clearly isn't for everyone, but its great for train lovers of all ages and well worth the visit.