Thank you for the tip Fransisco! I had forgotten to rename the folder. I was certain I did but apparently not.

Originally Posted by: franciscohg 
Or perhaps renaming it since when you unzip it, the name is src.
The zipped file structure is Railuino/src/files.
You have to make it src/files, copy to the libraries directory and then rename src to railuino
Hope this helps
Now to the new problem:Since I was not able to source a 10 pin mini din plug I decided to sacrifice one of a defective Mobile Station 1. By using a multimeter I mapped the pins to the correct wires. Since I can't see the actual pin schematic and numbers I closely studied the images and diagram at
http://yaasan.mints.ne.jp/ready.html.I believe I have correctly mapped the pins and soldered to the correct pins on the 9pin D-SUB.
After my first try I put all of the things together including the trackbox, arduiono etc. Fired up Desktop Station and opened COM6. Seems to work. Desktop station also identifies the trackbox. So far so good, right?
Now this is where it gets strange.
The first loco I tried was actually an mfx loco. I am aware of the possible issues with mfx but just thought I would try anyway. Guess what, it actually detected it right away! Took a few seconds but then "unidentified mfx loc" showed up. This is a loco I converted myself with the 60947 kit. However after detecting it I was not able to control the loco or it's functions. I tried playing around with the settings for a while but gave up.
After this I tried with a delta locomotive. Set the adress to 24 using the dip switches. Added "24" in dekstop station. No reaction. I see in the console it sends loco speed and ping etc and also recieves some "random?" data. However I fail to control the locomotive. It does however move. Slowly forward. If I press stop. Then start. The loco is at standstill at first. Then slowly starts to move. It is like it takes my "accelerate" command very slowly.
Everything stops/goes if i press STOP/GO in desktop station. So I seem to have some control.
My analysisFlashing the Arduino was straight forward. I don't believe I could have done anything wrong there.
Setting all the hardware up was straight forward except for the cable.
The Desktop Station application does receive information. Registering the mfx loco confirms that. I do not seem to have any control though. I tried desoldering pin 2 at the D-SUB end. That resulted in errors and emergency stops in the console so this leads me to believe that if the cable would be incorrectly soldered, I would receive errors in the console?
I have yet to try a regular FX loco. I am going to my parents after work to pick one up from my storage there. I do not see why delta locos would not work though. One idea is that they could be struggling with the "acceleration delay" when adding locos but I haven't had time to try this morning. Could that be the reason for the delta loco not working as it should? The speedometer did move accordingly when increasing the speed.
My conclusion is that my likely issue is either:
A: Incorrectly soldered cable
B: Delta loco/issues with acceleration delay.
If I manage to get a regular FX loco to work I know the problem with the Delta loco. If I don't it must be the cable. I guess I will have to strip the plug of the plastic and do it the "ugly" way to ensure the pin mapping is correct if that is the case.
Unfortunately I am "stuck" at work for 8 more hours but I will be checking in here often as I would love to get this working

.
Any ideas as to what my problem may be?