I decided to order a couple of the figures from this link even though they are 1:18 scale.

Hopefully they will look appropriate.
http://www.tankzone.co.uk/cart/dragon_18.htm
I also stopped at my LHS to check out some scale buildings, but of course 1:16 does not seem to translate into any train scale that they carry (which is a lot).

I did see a few that looked like they would work well enough (guard tower, rustic European cottages etc., but the prices are outrageous! [X(]
I decided to buy a few square dowels and I picked up a very thin produce crate from behind a grocery store. I'm going to try my hand at fabricating a few structures by hand for about 1/100th the price. [sm=thumbup.gif] If the guard tower works out, I will also build a shack and maybe a small house or two. I figure that I can take a straight branch, cut it into small sections a glue them together to make a woodpile to go next to the building. I seem to remember that Hobby Lobby carries scale tools and gas cans etc., so maybe some of that stuff will fit the 1:16th scale. [8D]