Industrial Switcher drive cog spins

Looks like it could be an alignment problem; the brass gear on the motor sticks out too far and doesn't mesh with the plastic gear below it. Were there spacer washers on the screws affixing the motor?

My educated guess is you are trying to run it on regular AC power. This is a DC engine only. The spinning is actually the armature viberating. Try a HO powerpack. A easy conversion adding an elecrtic circuit board to run on regular AC power. 

Chuck, I think you may be right...the power supply on my work bench is DC! But my layout is run by a ZW! I will try it with hooking up a DC pack to the track first thing Sunday morning! Thanks!

I put AC on one of those and toasted the motor.  The motor was not available from Lionel but I was able to locate a shop that sells them still.  They also had replacement light bulbs for that locomotive.  Just let me know if you need it.  

@Steims, I do need a light bulb; @ Chuck: I hooked up a DC power supply and it runs great! Another one saved from the scrap yard. I may just throw a bridge rectifier in side...I have done that to other DC motored engines before. Thanks for the help fella's!