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I have the newer one from the '90s I believe.  Lionel replaced the vibrating string drive with a DC motor and gears.  That works Ok, but they didn't upgrade the sawmill conveyor drive.  It still uses the filmstrip type drive to push the logs through the sawmill.  Filmstrip falls off the sprocket easily since there is only a guide on one side of the sprocket.  Its easy to slip back on but what a pain since you must partially disassemble.

I got it to be more reliable by carefully positioning the filmstrip at the startup.  The log drive finger on the filmstrip must not be showing when logs are dumped in position.  The logs tend to push the filmstrip off the sprocket.  So being careful to load this way I get probably 95% reliability.

If you need more suggestions, please provide what vintage you are using and more detail of problem.

My Lumber Mill is the original postwar version. Logs seem to jam quite often.

But where do they Jam?

Do they jam at a particular place?  After so many go in?  are the logs rolling out the back or maybe they are getting stuck there?  Is it the drive (vibrating string) not working?  Or the filmstrip slipping?  How do you unjam it?  Could they be the wrong size logs? not original?

I would take the cover off (building?)  and watch the mechanism work.  But easiest is take the roof off where the sawmill is in the middle to watch logs come in and planks go out.

Sorry I can't give any specifics on your issue.  I just suggest you take off the roof and watch very carefully how the logs move and roll in.  They must be getting snagged on something that may need some adjustment.  Is it just some particular logs?  Might want to mark the problem ones.  Also if you have a camera that can do slow mo video that may give some clues.

@Pup posted:

Have you tried lowering the voltage to slow it down. I notice that when the unit is moving too fast the log jams between the building and the finger on the film strip keeping it from falling back. The voltage is critical for smooth operation.

Exactly. Although the problems described above could be because of a variety of issues, I find that fine tuning voltage really enhances operation of many accessories (Postwar and otherwise). I use a separate Z-type transformer (the one with four dials) to dial in the sweet spot for voltage for several of my operating accessories.

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