WARNING: This unit is for DC operation only. If placed on an 18 VAC track, the internal capacitor will melt down, smoke, and possibly explode or cause a short across the track.
Obviously, Menards needs to issue a safety warning to all purchasers and offer a full refund. It is inexcusable that the unit left the factory without being tested using an AC voltage and further inexcusable that Menards did not test a single unit before selling it.
The problem is that a 220 uf electrolytic capacitor is internally wired across the center rail pickup to the outer rails. AC should never be applied directly to an electrolytic capacitor. Contrary to other web postings, this capacitor plays no role in illuminating the headlight, rear light or 2 front boards. Its wiring and usage is inexplicable. Without modification, this product is a hazard.
To modify, remove 4 black screws to take off the shell. Remove the two white ties near the capacitor and remove the capacitor by clipping the two wires. Use electrical tape to insulate the ends of the clipped wires. No further modification is necessary and all lights will still illuminate using an AC voltage. (The orange headboards will be a bit dim but that can be corrected at a later time by rewiring and adding a capacitor and diode to drive the headboards. The main goal now is to eliminate the safety hazard)
The next major issue with the dummy unit is that it does not freely move on the track. The wheels and axle exhibit enormous friction. I used a cocktail of WD40 and DeoxIT D5 to get the friction down to a point that the dummy would be usable. (Either one of the penetrating chemicals might have worked also.)
The good news to report (compared to 3.0) is that both armatures, thumbtacks and knuckles actually work!
Here is the lashup of the 4.0 dummy with the 3.0 engine. (The dummy is on the left. Color difference is due to lighting.)
So buyer beware, particularly if you were planning to buy a dummy on the secondary market.