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This does not appear to be a problem with the ZW. The XFMR does not know anything about train location on the track. It appears to be a track connection problem on the center or outside tracks or both. One way to identify a bad connection is to take a parallel wire from the common and hot terminal of the ZW and connect directly to the area of track where the train stops and slows down. If this cures the problem then I recommend checking the tightness of the three track connections. For both FasTrack and Tubular, crimp slightly the pin receiving holes in the end of the track.
Note: For both tubular and Fasrtrack it is recommended that common track power for any one section be input to the track at more than one point. In this way one bad outter or center conductor won't cause the train to slow up or stop.
If FasTrack, you can solder directly to the tabs on the track underside for a permanent connection.
I have had the same problem with FasTrack remotes. I noticed a lot of car wheel sparking on the outter rail which is V shaped with the turning entry part of the switch. I put electrical tape oven the approximately 1 1/2 inch part of the switch on the straight away. Problem solved. The problem has a lot to do with where the center pickup roller is relative to the wheels (common side of power).
On another note:
Also found that a problem with the common side connections using the 1.75 and 1.375" fillers. For some odd reason, Lionel quality control??????. The pin to rail connection is loose on all my fillers. I finally, after getting disgusted, removed all 18 fillers and wired (flow soldered) the connections from the pin dot point to the rail foldovers. Virtually all my electrical problems were solved. I also noted that in some cases, especially the 30" rails, the crossover strap is only crimped down. I advise putting a solder blob on all crossover straps in your setup. This will help when there there is a bad common connection in one or more points in the layout.
I have suffered beyond belief using the FasTrack remote switches. The extremes of poor quality control are evident in these Lionel products. I now have two that have intermittent control indicator lights. It is not worth the effort, they are still under warantee, to remove these switches and send to repair. The first repair resulted in a switch I simply threw away.
Track power is not recommended for this uncoupler. Use an aux fixed supply of at least 10 to 13VAC for the supply. You have to move a jumper on the bottom of the track to do this. Then there will be four wires needed. Two for the aux power (hot and common) and the other two which go to the pushbutton switch.
Note: Same goes for Lionel FasTrack Remote switches. Run the switches from a 10 to 12 VAC aux supply. There is a jumper you remove on the bottom of the switch to connect an aux supply.
This is a common problem with FasTrack Remotes and Manual switches. It is relative to where the center roller pickup is in relation to the wheels (common connection to outter track rails). Solution is to put electrical tape on the outter rail that forms a V between the turn in and the straight away. This elliminates about 1.5" of track discontinuity. It also eliminates wheel sparking that pits the surface of the outter rail. Wish I had a better solution short of taking the switch apart and doing some rewiring.
You will need to check continuity of the yellow RSC wire from inside the controller to where it enters the switch connection block. Neither light will work if this wire is broken.
2nd: Lionel quality control is so poor that if that is not the problem, remove the plate from the bottom and make sure the five plugs are firmly in place on the electronic board. Since both green and red do not work it is most likely not the micro switchs but an issue with the circuit board.
It sounds as though you may have two defective transformers. Lionel has reported problems with some of their smaller transformers. I would have the transformers and the engines checked by a Lionel service station or contact their customer service department for help.
Answer a number of questions:
Is the tranformer power adequate for the train and is it a working tranformer?
Will the train run by connecting the wires directly to the two points of the train (wheels and center rail connector)?
Are the tracks new?
Is the lockon new?