Wow -- I had not realized Western Village was in Nikko! I actually visited Nikko in 2007 and had no idea it was there. Nikko is a lovely town in the mountains about 2.5 hours north of Tokyo. It's been a resort for hundreds of years (the emperor's summer palace was there), and the mountains surrounding the town are now a national park.
I have a good friend (a fellow railfan!) who lives in Utsunomiya, about 45 minutes from Nikko. If he knows anything about the current status of Western Village and its equipment I will pass the information on to the group.
-Philip Marshall