I've not done very much experimenting with this, but here's the theory so far:
1) Lay the dynamic track section with a 25 m radius curve
2) Save and exit the editor
3) Locate and open with a text editor the world file tile
4) Locate the definition of the dynamic track section you've just laid
5) Change the radius to the value you want
6) Save the file and reload the MSTS editor
7) Edit the dynamic track section by changing anything else but the changed radius, which you shouldn't touch!!
You now have a dynamic track section with a smaller than 25m radius!
I've no idea why someone hasn't discovered this before.......or have they, and I've not spotted it being reported?