Just to be clear. By Z-750 remote control you mean like below with transformer on the left (black brick), remote lock-on in the center, and the remote controller on the right.:
And by manual Z-750, you mean like below with Z-750 controller on left, and transformer on right (black brick). In this case the lock-on is just to connect the power to the track and provide indication with a bulb that power is present.
So adding an engine to the track changes the behavior of the whistle and bell buttons...as well as now allows the PS2 engine to leave neutral and go fwd and backward. Again, it sound like a problem with the Z-750 controller. Does it change behavior like this when using the Z-750 remote control lock-on? I realize there may be some fussing to connect it to the Gargraves track.