Light on Fastrack turnout not working

Are you powering  the switch with AC or DC? The problem is, fastrack starter sets come with DC wall power packs. You are talking about the indicator on the side of the switch, not the remote control switch stand, but again, with DC, one polarity, the indicator won't light and also- at the switch stand, you won't get both red and green states lighting up.

Again, your assumption is this is a connection problem at the LED indicator at the switch, but a lot of people don't know about the DC limitations.

As far as that contact, simply bend up the copper ring contact sliding it up the post on the one side and it will then spring into the switch contacts when you assemble. No spacer is required.

Again, just lift up these rings slightly and reassemble.

The easiest way I know to prove this and test since you likely have the switch out of the layout- use a 9V battery between center rail and outer rail at the diverging entrance of the switch. Only use the battery if the switch is completely disconnected from your track layout and any power source. One polarity- say center rail positive, will light the white indicator at the switch and one of the 2 color states at the remote control (you have to switch t both straight and then out to show both possible states). However, the reverse polarity- center negative, the white LED is not lit, the remote control stand can light the other color when the switch is in that state, but then no lights at all in the other direction.

It's also possible they got the polarity of the 2 contacts for the white LED reversed, which again, with AC works, but with DC power source, may not work for a given polarity.

We get this locally a lot because people buy the Lionchief starter set with DC power pack, then begin expanding, buying switches, and then complain the new remote fastrack switch is bad. Then we have to demonstrate to them that their switch is not bad at the store, and they need to upgrade to AC power for the switch indicators to work as intended.

A fairly common issue with the Fastrack lanterns is the LED is cooked, there is a suggest mod to add a 200-220 ohm resistor in series with the LED power to prevent it from getting burned out.  When I had Fastrack, I had a few LED's burn out, which is perplexing since they should have lasted longer than I will.  None crapped out after I added the resistors.

Thanks I am using AC transformer and did notice that when I took voltage at the light stand it was in DC voltage no reading on AC I did check the light with a DC transformer at about 4 volts and it lit up.  So I thought a contact issue. 

If the LED is still good, you're right, it's some sort of continuity issue or a problem internally in the switch.

I lifted up the rings and light works thank you to all of your responses.

Greg