The first thing to try is to reverse the isolation pieces on each side. These pieces have a break in them, so when the wheel crosses the "break", they close the circuit and turn on the lights and drop the gate. If it is on all the time, then it may be installed backwards.
This may not be the problem, however you have to eliminate this as a possibility. When trouble shooting, make no assumptions! There may also be a chance the isolation track piece is not working properly or is defective. Be sure to clean out the gap that creates the isolated rail. Even a small amount of metal shavings can close the circuit.
On my layout, I made my own isolated rail pieces by removing the metal tab on the bottom of the track, then using a dremel tool to cut the track.
My understanding is that the switch turns the sounds on and off. The flashers and gate should work regardless of how the switch is set.
My Fastrack crossing works OK, however I have to admit that I may not have read the manual, and definitely have not looked at the manual in many years, so I cannot comment on what it says.
