Need Advice: Running a PS1 Standard Gauge Engine for first time. Have questions related to BCR and reset mode.

The BCR will not "Fry" the PS-1 board.  You can use it, though I would recommend using a new battery to get the Reset done and confirm operation.  Using a new 9V alkaline is fine for testing and reset.

Remove and install new battery.  Power up around 12V and let it start up.  Lower voltage to below 10V and use the direction button.  It should now cycle in all directions states.  If not and style only forward, you need to let us know if every direction state is fwd, or it there are neutral states also.

To do the Reset 18 follow the instructions.  Raising an lower the voltage AFTER first start up while in reset state.  18 times until you hear 3 clanks and 3 dings.  Than press whistle button and hold until you hear clear bell.   G

Hello George and Merry Christmas!!

Thank you so very much for your guidance, everything worked out well.   

The engine is functioning normally as I can change its states, forward, neutral, reverse.   When idling, I have crew talk and pump sounds.   The only thing not working are the lamps atop the engine.  Both ends are not lighting.  I tested the bulbs and they are operating fine.  Even cleaned the contacts inside and the contacts in the cab, but to no avail.  Any thoughts as to why? 

Also I had asked about the 10amp fuse set-up using an auto glass fuse.  Will this be sufficient to handle any derailments or shorts in a timely manner?

If those are direction lights they only come on when in motion. If track power lights, I have seen that center tab come loose and drop down, or the bulb does not fully reach it.  I usually center the tab and hold it while I screw the bulb in tight.  G