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Many, many folks have complained about the smoke output on some of Lionels locos. Your not the first and probably not the last.
If this is not a warranty issue, there are some videos on the Lionel video site about improving smoke output.
Bnsftrains,
I see your new to the forum. It helps when you have a issue that you give the item number and a description of the item you are seeking help with. The Lionel SD70 ACe number will start with a 6-XXXXX. I am assuming you are running the engine using a Legacy Cab-2 remote. I am not too clear on what you mean by running it on the lowest smoke setting. But to increase the smoke production use Alt1 then press the up smoke button which I believe is #6 several times until the smoke increases. Also make sure that you are at 18 volts or even 19 volts to get good smoke. Also make sure your switch underneath the engine fans are switched to on.
JohnB
Bnsftrains
The Lionel customer service will ask you to do a reset prior to them issuing a RA. Pull out your operating manual and follow the directions in the manual.
JohnB
Maybe a dumb question here, but have you tried blowing down the stack after filling with smoke fluid? And did you add enough smoke fluid?
Bnsftrains
Yes the resets do work sometimes, if you are a veteran let them know and they will pay the shipping if it needs to go back. Lionel has a real good repair center who will turn it around quickly.
JohnB