Hi.
Here's a funicular I built for an exhibition hosted by our LUG Kockice. It is based on a real life model called "uspinjaca" from my hometown Zagreb, Croatia (south-eastern Europe). It's apparently one of the shortest and steepest lines in the world (although the Los Angeles funicular sometimes takes that title). It doesn't really matter.
It is still in operation today, mostly used by tourists to get a good view of downtown Zagreb. (more on Wikipedia)
The incline angle had to match any one of the existing LEGO slope pieces so I could adapt the cars and surroundings more easily, this makes the whole build hard to match real proportions, but that is always the case with LEGO.
The cars are counter-weighed by boat weights and pulled by LEGO Technic spools. Only one M motor runs them through a worm gear. The switch is hidden beneath the track in the top station so the car that reaches the top can change the direction of the spools. The switch knobs can also be easily removed if you want to manually control the cars using a train speed regulator. Uspinjaca Funicular by Sven Franic, on Flickr Uspinjaca Funicular by Sven Franic, on Flickr
If you are wondering why that guy is trying to burn the street lamp, we still have people who go around the old part of town every night with a special stick, manually lighting all the gas lamps. (nazigac on google).
Uspinjaca Funicular by Sven Franic, on Flickr
There is also a low quality video of it running on my flickr page.