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A model train set, if chosen wisely, can start the recipient on a lifetime's hobby. However, the choosing wisely part can be tricky.
Firstly, think about the person you are buying for. How old are they, and how much space do they have for a layout? This will help with your next decision, which scale to pick.
Starting at the bottom, Z Scale. These are the smallest readily available models, made by Marklin and Micro-Trains, although the latter mostly offers freight cars. There is a limited choice of equipment available, although hand-built models are available if your wallet can stretch to them. It would not be advisable for young modelers or those older modelers whose eyesight is not what it was.
Moving up, N Scale. This is larger than Z, although still small with a track gauge (the distance between the rails) of nine millimeters. There is a far greater choice of rolling stock available, including kits that a moderately skilled individual will be able to assemble. If you are looking at a high-end start in N, consider the Kato range of sets. These come with a loop of their excellent Unitrack which is designed for repeated assembly and disassembly, along with a superbly engineered transformer/throttle unit. There is a choice of rolling stock, from Japanese Shinkansen "bullet trains" to Amtrak Superliners. Kato also offer very attractive train packs to extend existing sets, which are usually packaged in the form of a large book. Other manufacturers offer European models or a greater selection of American stock, all of which will run on Unitrack. For this reason, if funds allow I would definitely suggest a Kato set. For obvious reasons, N is not suited to the very young or very old, although it has a great appeal for those with little space as an enjoyable layout can be squeezed into a 4ft by 2ft area.
Moving up again, we come to HO. This is the most common scale and has been around since the 1930s. Inexpensive but good stock is available from the usual candidates, Bachmann, Atlas, Lifelike Proto, Athearn, and Walthers. Of particular note is Bachmann's E-Z Track system, which has a similar form to Unitrack with a molded ballast base. There are two types, the black roadbed with steel rails and the gray roadbed with nickel silver rails. I would strongly advise choosing the latter, as steel rail tends to require more cleaning and can rust. Bachmann currently offer some inexpensive but sweet-running diesel locomotives which can be run as they are and will repay future detailing
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