If it runs and has bell and horn, but no diesel sounds, and no smoke fan, the regulator is fine.
Do you have speed control (engine operates at scale speeds) or does it respond to voltage rapidly like a conventional train?
Did you try the feature reset (1 Whistle followed by 5 bells) You will need a bell button added to your 1033 set up to do this.
The 5V speakers had a problem with flaking of the metalic coating around the magnet, so a bad speaker can be causing some of your sound issue. Smoke fans also fail. If the fan runs on a battery, I would look at the bottom front edge of the PS-2 board in the vicinity of where the 4 wire connector(Smoke harness) plugs into the board. There are small FETs near the pins of that connector. Do any look burned. 2 oppose each other and control the smoke fan.
You can also have pinched wires or partially connected connectors. So alot depends on whether the engine still has speed control and what you find when you examine the speaker.
PS-2 DO NOT use chassis ground as part of the DC circuit so be careful testing fan and speaker. If you ground them you risk damaging the PS-2 board which gets you into a costly repair. G