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I bought a 262 a while back.  It ran great, but it would regularly cut loose with a huge blue spark from underneath.  I figured out that the  rear pickup was shorting out against the retaining screw for the rear truck as the engine bounced around.  I couldn't figure out how that could have ever worked, as it didn't seem like there was a faulty repair or anything.  Upon further investigation, it seems that there were at least two different frames for these locos:  One like mine, and a second (more common one) with the retaining screw bracket moved towards the rear.  With this second version, there is no interference between the pickup and screw.

Anyone know anything about this?

You can see how the screw and pickup are almost touching (rear truck removed for clarity):



From the bottom, you can see how the screw is beneath the rear pickup; the back edge of the bracket is even with the motor frame:



Two views of the frame.  Note how the bracket is even with the back edge of the opening for the motor and the screw hole is well inside the opening for the motor:



Another frame like mine.  Notice that you can't even see the screw because it's tucked under the pickup:



Look at this frame; the bracket has been moved back and is inset from the motor opening:



The truck screw is clearly visible; the edge of the screw head is even with the rear of the motor frame:



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