Regarding the string motor:
Lionel used the string motor in a number of accessories.
As you found, the string and pulley must be absolutely clean.
I think that if you had the correct spring, you would not have needed to rough up the pulley to make it work.
I have never adjusted a motor by bending the bracket. I have always been able to make fine adjustments by grabbing the end of the string next to the lightly crimped eyelet with a pair of pliers (edge resting against the eyelet) and twisting the pliers just a bit to tighten further.
The string can also be loosened this way if the crimp isn't too tight.
When adjusted, tighten up the crimp.
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