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It's MPC era, not sure of the part number.

 

It would just stay engaged the whole time while power was going to the track, even before I wired it.

 

After I wired it started working, but when it's not engaged it gets really hot, in fact it started to melt the plastic around the magnet

 

I used the directions from the Lionel site.

106_8066

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There's a short somewhere between the center rail and the screw terminal for the magnet.  There is supposed to be one wire from the screw to a small pushbutton, then from the button to the center rail(lockon clip 1) or the transformer terminal connected to the lockon clip 1.  Look for stray wire strands around the screw under the track and make sure there is nothing completing a circuit from the screw to the center rail.

 

If the button is stuck, it will remain energized as long as it is connected too.  Any doorbell button will work if the button/switch is defective.

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