Transformer Issue?!

For your 2238, sounds like the e-unit lever may be loose or need servicing.

For the ZW red lamp, that only illuminates when the circuit breaker trips, so it being off is a good thing.

However, for your sanity, it may be worth it to have your transformer serviced. They may replace the carbon rollers, replace the power cord, test the breaker, clean and lubricate the whistle/direction controls, and check for any other issues.

The ZW 250W is a good transformer and once serviced, will outlast you.

Great advice regarding the pw ZW from BMORAN4 above. "other issues"-- take a look at your "U" and A,B,C,D binding posts for broken or loose wires and/or damage to the post itself. Replacement posts are readily available.

I just started getting in to o gauge about a year ago.  I wanted to do it affordably so I found a used ZW on Craigslist and a box of old track.  I chased gremlins in the track for weeks.  Turns out the ZW needed a lot of service. Three big things that helped me that have already been mentioned.  New breaker, new binding posts (some of mine were broken off inside at the river) and new carbon rollers were a must for my ZW to get my trains to run right.  

When I have the wires on the right side the trains run great but when I press the horn lever, the horn works but all engines reverse.

This could be as simple as dirty contacts in the whistle control switch.

 Now for the transformer issue, when I have the wires running on the left side of the ZW the red indicator light doesn't work and all trains will just simply stop where they are on the track. I usually have to toggle the wires to get them working again.

What does "toggle the wires" mean? (Wiggle?)

As others have posted, you may have some terminals with bad connections inside the transformer. Sometimes they appear to be OK, but if you try to move the solder lug ("A" through "D" terminals) they pop off.
The four common terminals are connected to a buss bar. Sometimes you can see the buss bar pulled away from the terminal. Other times its harder to tell. You can use a VOM or continuity tester to make certain all four common posts are connected together. If you open up the case, make certain they have connectivity to the buss bar.
If only one or two terminals are bad, you can get away with just using another until you get the bad terminal(s) fixed. Electrically they are all the same.

The power cord should also be inspected for cracks and checked for brittleness.

It is always a good idea to use external circuit protection with a large transformer like a postwar ZW. In addition, if you are running modern trains with circuit boards, TVS devices are recommended.

Thank you all for the information! I am already looking into the fixes! Nothing like running postwar equipment and it's amazing the detail even back then. I will post some videos soon so you all can see my engines in action. Loving this forum and am learning a lot.

Thanks again,

Mike

I have a Lionel post war ZW that is rated at 275 watts. I have had this transformer serviced about 6 months ago and it works very well. My only complaint is the internal circuit breaker is rated too high to work with the newer engines so I installed 7 amp breakers at each terminal output(A, B, C, & D) going to the track. Also installed a small part for each output terminal, a transient voltage suppressor, from Mouser Electronics to limit the voltage, rating 32 volts.

Lee Fritz