LNE, being I'm a bona-fide 027, I'll help.
For starters, all those K-Line engines like the S-2, MP-15, Alco FA and the RDC car WILL run much slower if you use a transformer like the Lionel 1033 using the B-U voltage posts settings: starts at 0 with a ceiling of 11 volts. Much better for those engines.
Sometimes these locos can jump the curve on 027 switches. The fix is easy: insert a small spring (on the lead truck) over the ,metal guide pin from the truck (that goes into the curved slot on the loco frame), between the top of the truck and the bottom of the loco frame. Problem gone.
If you like the K-Line S-2 (as I do) then you will really like the RMT BANG S-4 or the RMT BUDDY RDC car. RMT changed the motor specs so these engines run much better with a typical postwar transformer. I have to use the A-U setting of the 1033 to run these.
The front and rear handrails on the BANG are more solid than you would think. The horn is not Railsounds, but on par for a starter set type of engine... you can do worse. The directional lights are a nice plus as are the roof strobe lights. Wholesale Trains has a good price on them. They're not in stock in the store, but they can get them within a week. Tell Becky, Brian the KOI Aquarium guy sent you.
The common Lionel 4-4-2 starter steams run great on 027 track and don't look out of place with traditionally sized or 027 rolling stock. Use the Premium Lionel smoke fluid with these... a vast improvement. For that matter, though a little more scale in size, the Lionel 0-8-0 starter steamers have been in production for quite a few years and are a decent loco too.
The die-cast Lionel 0-4-0 with tender hasn't been made in a while. The last one was an Angela Trott version. Another small and good running 027 loco, but you do have a tether cord on this one between the loco and the tender.
The MTH starter set 0-8-0 steamer is a solid performer for small layouts. They don't make them separate anymore, but if you look, they are around for sale. Same goes for the Rugged Rails F-3. Small by scale standards, but perfect in my book. Again, not made as a separate sale item, but they're around for sale too.
The Williams 44 ton centercab, the Lionel copy, well just pretend it is a larger centercab loco... for a single motor, still a decent running engine. More expensive is the Williams NW2, a clone of the Lionel one, but with dual motors. Most of the modern era Lionel NW2's have a single motor, so you won't be able to pull as long a train.
I've had no stalling issues with any of the locos I've mentioned.
Seriously for the money, you will do well with either the RMT BANG or BUDDY. I took one of my RMT RDC cars, blocked out a couple windows in the front and back and repainted it to Conrail, where on my layout it serves for MOW duty and freight... if you want to get creative!