It certainly should be fine, it's supposed to be compatible with model trains.
Hi John, thanks, I'm going to recycle the yellow stuff on the locomotives to the new trucks (please see attached,) in the future, I'll use the 106 on the worm drive and the medium weight oil on the gears like a normally do.
I've used Labelle 106 myself. Some Lionel locos use nylon gears and it's a great choice for those. This is a metal-to-metal application so almost anything would work. My guess is that the steel worms on the motors are okay; a cracked worm wheel is more possible but still unlikely. The crack could be very fine and hard to see. Troubleshooting by substitution is a good strategy. Please be sure to post back, and let us know what you find.
Hi Ted,
Absolutely will update once I get them on. Can you please let me know when you can if I put on the new truck, can I skip the coupler (I just want to see if the ticking is no longer there, if it is, I don't want to go through the work of taking off the e-clip and putting it back and the wiring routing. All I want to do initially on all of them is add the new trucks with no coupler (I'll leave the coupler connection clip wire on the locomotive dangling so to speak (the two are connected via a clip, where I will disconnect them with the clip, so one part is on the locomotive and one part on the old truck) If all is well, I'll transfer the coupler. I don't think there should be any issues, I wont be signaling the coupler top open/close, and if I did by accident, it simply shouldn't work and that's fine, but the locomotive should be able to start without that connected I assume?