This was the first edition to include the formerly separately retailed PaintShed program and support RailDriver, as well as the first incorporating Trainz user developed freeware content as part of the release, some of which became Trainz staple content in TRS2004 et al.

The Ultimate Trainz Collection, or UTC, was released on 26 November 2002 in North American as a 3-CD set including extra rolling stock, and a CD-ROM with TrainzScript-based scenarios and route map content based on Trainz 1.3 tech. Thus all USA versions are commonly known as Trainz 1.3. Trainz Retail Edition was released in June 2002 aimed at the United States and other North American markets. Service pack 3 was released in November 2002, this updated both the Community and Retail Editions to version 1.3. (Box, which included Gmax as an accessory is shown at right in lower left corner.) Two retail builds (retail versions releases) existed the English/USA version is commonly known as Trainz 1.0. Trainz Community Edition was released in December 2001. Service packs 1 (April), 2 (June) and 3 (November) were each released in 2002, these progressively updated the Community Edition, Trainz 1.0 to versions 1.1, 1.2, and 1.3 successively. Any train can be given directions to be driven by the computer. In CAB (cabin) mode the train physics are more sophisticated than in DCC mode adding real-life considerations such as wheel slip on the rails how the weight of the consist slows acceleration and deceleration. The user then operates the trains in Driver, either in free play, or according to a scenario called a Driver Session which can range in difficulty from beginner to expert. In the route editor, Surveyor, the user can shape the landscape, paint with ground textures, lay tracks, and place buildings and roads.

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