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Really, it depends on what you're into. Some trainmen like to focus on elaborate track plans and extensive operations. Some like to focus on scenery. Some like to focus on scale modeling, while others are comfortable at any age with "toy trains."
The Lionel world is divided into two types of trains: O-27, which are more like toy trains, and scale model O gauge. The track width is the same, but O-27 trains can generally run on a 27-inch diameter circle, while scale models are larger and longer and need wider curves - at least 31 inches, and for many modelers more like 36 inches or 42 inches (again, this is the diameter of the circle - HO collectors measure the radius of the circle). O-27 are more affordable and better for smaller hands. You didn't mention how old your son is, but if he's pre-teen, O-27 are more durable and will usually withstand an occasional crash or drop.
Is there a particular industry or type of operations you would prefer to operate? Coal mines? Factories? Passenger lines? Trolley systems? Do you have a favorite railroad line (I model the old Burlington [CB&Q])?
I suggest you pick up a few model railroading magazines and see what suits your fancy. Classic Toy Trains looks quite a bit at Lionel. Model Railroader and Railroad Model Craftsman examine all scales, although they tend to include more about HO scale. Nonetheless, the lessons learned are applicable in any scale.
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