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Initial testing

When you have installed a single RFID point on your layout, it is best to try and test before installing more.  It is also a good idea to test each piece of rolling stock when you attach the tag. 
In the first instance, keep the hub where you can see it - this may involve using a different length cable to that which will eventually be used, especially if you are mounting the hub under the baseboard.
Note the position where you have mounted your aerial, and therefore where you will be able to read the tag.

Testing the Aerial

Taking a tag, just place it between the tracks in the place where the aerial is under the baseboard - and you should see the red RFID LED.  Moving the tag in the direction of the tracks until the red LED goes out will indicate the in-line distance of the read - this will probably be around 35mm.  Lifting the tag up to just above the level of the rails should keep the RFID LED on, and then moving it side-to side will give an indication of the lateral width of the RF Field - for HO/OO tracks, the tag should work to just outside each rail.
Find the centre of the aerial position, and then lift the tag up above the rails - you should be able to get around 10mm above the rails before the RFID LED goes out - depending on the thickness of your baseboard and trackbed.
The picture on the left has a LED repeater on my test track, so I can easily see when a RFID point is being read.

Testing the Rolling Stock

The best idea is to install one tag on a piece of rolling stock, maybe a truck, and then test it.  Follow the guidance on the Tag Install page, especially with regard to keeping the tag away from any metal.  Once a tag is installed, you should be able to put the truck on the track, and roll it by hand over the aerial position, and see the red RFID LED light, both on the hub and the reader.  Once you have installed a couple of tags, you will find out what works.  Note that on N-gauge, especially on locos, the read distance could be less than the targeted 30mm, as it might not be possible to place the tag 3mm away from any underlying metal.

Testing the Ethernet

The ethernet is the primary way of the hub communicating with computer based control systems, such as JMRI and Rocrail.  You can connect the ethernet cable either directly from the Hub to the computer, or through a wired router, or through a wireless router.
The green LED on the top left of the ethernet socket is a presence detect LED, and this is repeated on the orange ETH LED on the Hub.  When a connection has been established, these LEDS will light, and will stay on whilst the ethernet connection is live.   A flashing LED indicates that data is being transferred, whilst the LED being off indicates that the the ethernet connection is not working.  Note that if you are going through a router, the LED indicates that you are connected to the router, not that you are connected the the computer running JMRI or Rocrail.
If you are not using CBUS, then the CBUS termination link must be put in place.  This is because the data on the ethernet port is a copy of all the data on the CBUS, enabling you to connect hubs together with CBUS.  However, CBUS specification states that there must be a termination on the bus, otherwise it may not work properly.

Testing the CBUS

Activity on CBUS is shown by the yellow CBUS light flashing.  This LED will flash when a tag comes into the RF field, and when the tag exits it. If you have two hubs connected together with CBUS, then the LED will flash on both hubs.  If you have other producer modules on the CBUS, then the LED will flash whenever a module sends a CBUS message.