After loosing #1 Variable Channel troubleshooting revealed the channel was open: 20VAC @ input / 0 VAC @ output. TIU was powered thru aux jack using 14 VAC constant output of Z-4000. It wasn't until I got inside TIU that discovery was made that AUX Jack is looking for common return on center pin (NOT OUTSIDE BARREL). This is real important if you use a layout transformer to power aux input. It would not matter if power was from a brick our outside transformer. Pictures in MTH DCS Handbook show using an external transformer but no mention is made of caution necessary when using layout transformer that also supplies propulsion power to TIU.
My layout uses eight power supplies properly phased supplying a #8 buss that runs the whole circumference of the layout. I initially connected the barrel of the aux plug to common and the pin to a 14 VAC constant output of a Z-4000, passing thru a fuse and toggle switch. Being AC can't say the polarity was wrong but reversing the bias on the aux input wires gives external control to TIU power supply...although at this time #1 VAR is open.