My PE has had way more than its share of problems (as well as my C&O Mike). A few months ago it also quit smoking. Since it's WAY out of warranty, I did some trouble shooting. There is a wisp of smoke coming out, so the element is OK. When I disconnect the fan, and apply current, it spins. But the board doesn't supply current, so it doesn't operate when plugged into the board. Now I just run it with no smoke. I'm tired of trying to get Lionel things to work. I'm not paying for any more repairs. At least it runs and has sounds. For now. For those who have well performing items, good for you. Lionel's track record for me is abysmal. For their sake and that of future customers, I hope they have resolved the many issues of the past.
I find it quite ironic that illumination of the cars ISN'T one of the my set's problems.