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Michael, it sounds like the loco has a bare wire touching the body shell, or possibly the reverse unit drum has broken and is shorting the E unit contacts. It would require hands on disassembly to diagnose and repair. Where are you located? I do this kind of repair, as do many others on the forum, you should be able to find a competent repair person near you. 

I agree with Train Doctor, probably a bare wire or faulty E-unit drum. I repaired a 1666E for a friend when I worked in Kentucky and when I took it apart I found that the E-unit drum was warped and the contacts were damaged. The 1666E is very similar to a 2026. If you feel competent to disassemble it yourself, this should help a bit...

http://pictures.olsenstoy.com/2026-48.htm

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OGR Publishing, Inc., 1310 Eastside Centre Ct, Ste 6, Mountain Home, AR 72653
800-980-OGRR (6477)
www.ogaugerr.com

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