Wow, lots of great replies, thanks a lot! I have been busy with work so just had a chance to skim, I'll read each reply more thoroughly soon and answer some folks.
Good news. I stopped by my favorite LHS. They had a PS2 Amtrak Surfliner for $65, said 1200 miles, guess that's high? Anyways, I explained my situation and the owner said to take it with me on loan to test my system and bring it back when I'm done. Talk about service! Shout out to Cool Trains and the owner Ted. Things check out okay with 'Fixed Out 1". No lights, not sure if that's an engine issue or something else? Looks like it uses incandescent lights still (not LED) so maybe just a bulb?
The manual states Fixed In1 must be powered for the TIU to work. Do I need another transformer to test the additional TIU inputs/outputs?
One last thing, is this engine the 3V OR 5V ps2 board? May keep it since the price is right.
Please excuse my portrait mode video. Thanks again!