Thanks John...I have come to understand LED required polarity, resistor to limit current and the diode to keep current flowing one way.
As you mentioned, on DC, polarity is necessary to light, the reverse as you said produces no light.
The Lionel lights have instructions to wire red to positive and black to negative.
I was only wondering if this was truly necessary using AC and trying to understand my results. Trying to educate myself here
In the pics below, I am using an AC transformer set at 16 volts AC and I can power the Lionel lights in either direction. Red to black, black to red ect. In any configuration I get light on AC.
The additional pic shows only a resistor in the light base cavity.
Thanks Dave