Jim,
The speaker is almost certainly the cause of the garbled/low volume/staticky sounds. Replace it with the correct speaker for a 5 volt PS2 engine. Just get the replacement speaker from MTH.
By the engine "not remembering its name", I expect that what you mean is that you have to keep re-adding it to the DCS Remote after you've turned off track power. If so, it's most likely either a dead/weak battery or a disconnected wire between the battery and the PS2 board. Less likely is that the board's battery charging circuit has become defective.
Place the engine on a powered track and start it up making sounds. Turn off track power. If sounds don't persist for 6-7 seconds, first ensure that the wires have continuity between the battery and the board. If so, replace the battery with a new 8.4 volt NiCad or NMH.
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