Be careful -- most of the information about the "upgradeability" of this piece mentioned above is incorrect.
As Ed H posted, this piece was an exclusive made for JCPenney in 2001. It came with a SignalSounds tender, which only has whistle and bell sounds. (Therefore, it seems like the OP's tender is working correctly.)
The manual that Lionel shows for this locomotive on their website isn't right. It was for a later version of this locomotive with RailSounds.
Unfortunately, there isn't really anything upgradeable about this piece. The locomotive comes with a standard 103 e-unit, which is not TMCC-compatible. While you could technically plug in a RailSounds 4 audio and power board to the tender motherboard, there isn't any way for the tender to see a "chuff" command.
And if there really is a 9-volt battery plug inside the tender, it shouldn't be there as it doesn't serve any function.
I hope this helps.
TRW
I don't know why you would say that "most of the information about the "upgradeability" of this piece mentioned above is incorrect"
I said that, I am not familiar with that particular model, but MANY Signal Sounds locomotives ARE Upgradeable to TMCC and/or Railsounds. I didn't say that Particular model was.
Mike Reagan said that, IF it is cab #2001, it was delivered COMMAND READY, and IS UPGRADEABLE, and listed the Lionel parts required to do so.
Mike may have thrown me under the bus, on a previous product defect, but I suspect that he knows what he is talking about, with this locomotive, He does work in Lionel's service dept. I don't know what your experience, or knowledge is regarding Lionel products.
The 9 volt battery plug, that probably really IS in there, Probably Really does Belong in there, AND serves a Purpose, it should be in there to maintain the sound system during power interruptions, such as conventionally cycling the "E" Unit during direction changes.
Doug