Need help please...

Open it up and look for wires that are pinched,bare,burned,rubbing, or anything else that doesn't look or smell right.

Thank you I will.

Remove the locomotive from the track and turn her upside down ( being mindful of any smoke fluid you may have put in her), examine the coupler and see if that coupler looks the same as the other one. If anything is out of place, see if it can be put back in place without further damaging the coupler. Sometime, not all the time, but sometimes new things during shipping get whacked up a little and when you first place the locomotive on the track, that is when you find out.

If all else fails, please contact MTH directly and ask to speak to a technician. They will likely be backed up and they do have holiday hours, but be patient and get this issue resolved.

I might add that it sounds as if something is hanging a tad bit to low and thus is making contact with the track and causing the spark you see. Just a guess mind you, but a place to start.

Best of luck, Pete

YES!, you must fix that sparking before you run it any more! It WILL take out the major circuit board. The problem is the coupler is grounding out on a axle. MTH has some clear mylar insulator that go over the coupler to protect the wire connection at the coupler. Get this done at a MTH service center or order some. Maybe someone who has done some PS-2 upgrades near you may have some. If not, contact me and I have a pair I can mail to you.

Gentlemen, thank you for all the suggestions.  I am pleased so many responded. I will take action and have a MTH serviceman look at it.  Merry Christmas!