Lionel State Set Bi-Polar Failure

I’d have to look in the manual but the continuous cab blinking is actually a “1” blink error code. In most cases means motor is stalled. One would hope that it’s just as simple as something stuck in the drivetrane but if not most likely is a motor or RCMC failure. If you dint see anything your best shot is Lionel Service. My challenger went in for obvious reasons and came back unscathed. 

I’m sorry to hear about your mishap with the motor...  however I’m glad to read that you gave credit for it being a beautiful set.  I have this set myself and was pleasantly surprised to see how nicely the engine was done.  The cars are pretty nice as well.  I got the entire set so it was a pretty penny...  and a BIG risk considering the issues recently seen with color mishaps.  I feel very fortunate that it was done well...!

Best to send it back to Lionel's service dept, removing the shell will void the warranty.

That is a kick-in-the-pants.

I cannot offer anything constructive, but keep us posted on what is wrong and the fix.

Might want to just check and make sure you don't have something rubbing or binding, like a traction tire, brake shoe, wheel or axle that would cause it to shut down.

Or a piece of debris the motor inhaled or wasn't removed at the factory.

Don’t know if the Encoder ring is on the rear motor , but that could be the issue. Maybe it was loose during shipping and now it popped off. If it did pop it back on 

Alex