My dad and I have been working for the last two months on getting the backdrop up and it is finally finished. This had to be completed before I could move forward with any other part of the layout. Here is the step by step of what we did.
First we cut, glued and screwed firing strips to the wall. 
After the firing strips were mounted we added rounded corner supports.
Next we glued and nailed 3/16" masonite panels to the firing strips which would create the wall to mount the backdrop.
For the corners I chose to use an 8" radius due to space limitations of my layout design. This is a tighter radius than most people use. In order to bend the masonite panels we cut them into smaller strips and precut kerrfs on the back side of the entire radius.
After all the panels were up I then mudded the joints and nail holes to create a smooth surface.
After 3 coats of mud with sanding in between we were then ready to hang the backdrop. The backdrop was purchased from backdrop warehouse and came in 4 sections (lower scene A and B) and reverse gradient sky extensions A and B). We used rubber cement to glue the backdrop to the backing. It was a bit of a tedious process to get each section lined up and glued on properly. It didn't turn out 100% perfect ( there are a few wrinkles and bubles, mostly in the corners) but all in all I am very pleased with the result! If I ever have to do another one, I'll know what not to do :0).
My layout is going to loosley model the feel of the Pennsylvania and Western Maryland railroads in the 1940's to 50's so this scene will nicely set the stage for that.
The next project will be to start laying some track for the lower level and start testing some trains for operations and clearances etc. Until next time, thanks for reading. Hope you enjoy!
