Tim-
Are you using TMCC or Legacy? If you are using Legacy, check that the "train brake" sldier is pushed all the way up (to "-").
The wheels on most powered diesel engines do not turn freely due to the gearing between the wheels and the motor. However there should be a slight amount of free play, so if the wheels can rotate back and forth about 1/8" of an inch or so, a jam is not the likely issue. If the wheels do not even turn at all, or if you see foreign matter in between the wheels, then you might have a jam.
To clear a jam the easiest thing to do is remove the entire motor truck. With the advent of Lionel's Liondrive this is very easy to do - simply rotate the truck so that the sideframes are perpendicular to the fuel tank and then gently pull down to release the truck. Disconnect the wire harness attached to the truck and place the rest of the locomotive to the side. With the truck detached, you can rotate the wheels back and forth while inspecting for any debris; if any is found you can clear it by pushing on the wheels to get the jammed gears to reverse. If however there is evidence of broken/missing teeth or stripped gears, replacement parts may be in order. Since you have the truck apart, it might be a good idea to lubricate the gears and bushings per Lionel's instructions.
To attach the truck back to the locomotive, reverse the steps above. Connect the harness back, hold the truck perpendicular to the fuel tank, push up, then rotate so that the coupler points away from the locomotive's cab. You'll feel some resistance and then hear a click, indicating the truck is back on.
Good luck!
-John