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Sounds like the switch is the lockout, to lock the motor in whatever direction it is going or to unlock it and allow the reverse unit to cycle. 

As for the reverse mechanism, there are a couple of different types that were used and it sounds like yours is not cycling properly. 

Once you get it in forward, my suggestion is to lock it into that direction and leave it there.  Flyer's prewar reverse units leave a lot to be desired.

After I understood how it is supposed to work,  I put it back together and it still didn't work properly. Then I discoved that I could reach in from the rear and move the arm inside into the correct position. I then was able to get forward motion and put the unit into a locked condition.

What a sweet running engine. So smooth that it puts a lot of my modern engines to shame. I will be looking for more prewar American Flyer engines.



Thanks everyone for the help.

Charlie

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