We are investigating taking the train from Budapest to Vienna and then Vienna to Prague. We were told to take first class seats. Two questions: 1) does that mean a separate compartment? 2)website refers to a "rail protection" plan charge for $10.00 for each ticket. It appears that you can opt "out" of this rpp. Is it necessary or is it just a padded expense? Any advice?

EVERYTHING to do with RailEurope is a padded expense.

Don't use them.

Two seats in 1st class do, of course, not mean a separate compartment.

We have heard that but how else do we get tickets?

Go to the train station in Euyrope and buy them

Oops, Europe.

But seriously unless there is something more complicated about the itinerary, or you want to book an overnight cabin or whatever, you CAN in fact purchase rail tickets from a train station in the cities you mention.

It is very rare for trains to be fully booked, and even rarer for trains to be fully booked more than a day or two in advance. From Budapest to Wien, there are lots of trains. If they were all solidly booked, the railways would add extra carriages or run more trains.
Apart from overnight journeys and TGVs at busy weekends, there is really no need to worry about booking trains before you get to Europe.

Quite a few people have recommended and used BETS for booking trains - I think because there is no markup for the trains, but a reasonable handling fee for the service or the mailing. I am unsure whether they only handle passes or if they also sell point-to-point tickets.

http://www.budgeteuropetravel.com/
(800-441-2387)

Also recommended:
http://www.euraide.de/offices.html
1(941)480-1555

Geoff, the trains on these routes AFAIK don´t require reservation, thus CANNOT sell out.

Thank you all. I think we will wait till we get to Europe.

Just for the record, BETS does sell point-point tickets, BUT they get them from Rail Europe, so you end up paying Rail Europe's markup anyway. They accept the small commission that Rail Europe pays them and don't mark up the prices any more.

I mostly agree with Geoff about not needing reservations except for night trains and TGV. It is especially true for night trains, for which there is usually no alternative and which can sell out a month or more in advance. Advance reservation are also advisable for Thalys if you have a rail pass. I have heard horror stories about people "stuck" in Brussels because all the passholder reservations on Thalys are booked for days.