Are you using fixed voltage plugs? Were the switches bench tested before installation?
Are all of the 022 switches doing this? Just the ones you bought?
Olsen's Toy Trains maintains a free online Library of LIONEL service manuals. Here's a link to the 022 Service Manual:
http://pictures.olsenstoy.com/searchcd31.htm?itm=673
The above has a very good description of how to test and diagnose issues with the 022 switch.