No the engine back up light works fine when running in reverse even with cars behind it. Its only when a vision sound car is added using the train builder does the light not function. When a sound car is used with the engine programed just as an engine it works fine.
Its just annoying because I use the velocity direction feature via the red knob. Having the rear light helps me to verify that the engine is in reverse. As norton said its not prototypical,but it is that way on all my other legacy engines.
I first thought the light had gone out, but switching from the train softkey to engine softkey in testing the rear light came back. So thats when I noticed it was only in the train build mode when it stopped working. I tried clearing it again and re adding the engine and sound car. Still no backup light. So I tryed other vision sound cars as well,but the same thing no light in reverse.
I think chuck nailed it in his post.it seems lionel should have tested this at the factory,but they did not. Possibly they cant test everything. So like pete and chuck said its anoying at best. I will not always be using my vl sound cars behind this engine so sending it back is not worth risking it getting damaged.
I just wish lionel would get it together. Especially on a high dollar legacy model. This model is not the first with issues.
Just as a side note...out of the box I experienced no derailling on my 036 fastrack switches. It was not a smooth ride though. So I did move the axels with the tires to the rear though. It still bumps through some switches, not all it runs a little smoother. I think its the fastrack not the engine. I have some atlas switches and mth realtracks switches I will try it on just to see how smooth it runs though them when I get a chance to test it out.
I do love this engine though the small tender is good looking.I like the five whistles and class light colors that change.
Also for those that own this engine check the gearbox for grease. Mine only had a small blob so I added my red and tacky. Now she is fully lubed and serviced.