Just wanted to follow up since I originated this thread. I sent my shay back to Lionel for warranty service. They replaced the part that I showed in a picture earlier in this thread. Upon return, my unit still has the exact same issue when running in my yard area which is composed of RCS curved O72/O54 switches that lead into the yard, plus RCS #5 and #4 switches for the yard tracks. The shay seems to hit this problem when traversing the curved switch. I contacted Lionel again. They assured me they did replace the part with a brand new part the first time I sent it in. Their only options this time was to send it back to replace the same part yet again, or refund my $$. Since I think this problem is with the design of the unit when running on certain switches/curves, I decided to get my money back.
I'm disappointed with the performance I have experienced for this new shay. I guess I'll have to find some other logging engine for my layout.
I do want to state that Lionel has been great in supporting me with this problem. Their service, for me, has been top notch. Unfortunately, I just don't want to keep dealing with a recurring problem. Life's too short, eh? Since others are having success with this engine, I'll chalk it up to my particular layout design. Or maybe the RCS curved switches.
Cheers!
Steve.