I just received an email from FedEx that my Lionel sent me a package. This means that my SW7 is on it's way back to me from Lionel Service in NC.
I did not want to do the internal gear lubrication myself, likely voiding the warranty and possibly breaking something else, so I had called for an RA on May 16th.
Of course I later found out about Lionel's move to a new facility and patiently waited for my new engine to be repaired. I am keeping my fingers crossed and do expect to receive my engine back still in new condition and run quietly without the grinding, squealing sounds that I described in my documentation sent to Lionel and as others noted in the above postings. This, I hope is good news to all as it means that Lionel Service is up and running again!
I will post when the engine arrives on 8/23 with hopefully good news! Timing is good as I have a new layout to use for the test run.