Tom, some good suggestions here. I notice quite a bit of rust on the engine from your second underside photo. From your statement, that by removing the traction tires it is running better, leads me to agree with what ACDX Rob suggested about checking the ground from the chassis.
You should be getting ground current also from the front truck. I'd clean the wheels on the front truck also, as well as checking the frame itself, making sure their is no corrosion where the front truck inserts into the frame. It is easy enough to remove that front truck and also check the C-clip and the pin that inserts into the frame. Also check if there is any corrosion on the sheet metal inner frame of the front truck... everything there needs to be clean to insure a good ground from the wheels of that truck to the frame of the loco.
If you were getting a good ground from the non-powered collector truck, you shouldn't have had to remove the traction tires, at least by my experience.
The corrosion I see on the rear motor truck by your photo, would lead me to give the entire engine a good overall servicing and cleaning. If there is corrosion on places you can see, there's a good probability it's there in places you can't see.