I didn't see SJC's post, but I'm not thrilled with the traction tires on my B&M Mogul, either. First, they are mounted on the front wheels which makes changing them more difficult (not sure why they couldn't have been mounted on the rears).
More importantly, the tires seem awfully narrow compared to the width of the wheel, itself. It's almost as if the train is balancing itself on a tire which is too narrow for the wheel. If you look on the video I posted on the recent "Ac-9's Shipping" thread, you can see the train is wobbling a little on the tracks. In addition, the tires seemed out of round. When I track tested it at my local LHS, we saw the wobble and actually took the loco off and tried to true the tires with a very small chisel.
Gary - Make sure the tires aren't rubbing anywhere. Then I'd try turning everything off and turn the smoke switch off on the underside of the loco and put the loco back on the track and power up and start the engine. Make sure smoke is off on the remote. Hit the "R" button and you should hear a quick horn/whistle. Try moving forward and see if it goes.
If that works, I'd power everything down again and re-program under a different ID # with the smoke switch still off and then back to run. If that works, I'd power down again and put the smoke switch back on and back on the track. Run a couple of laps and turn the smoke back on via the remote.