Interesting thread to me. I just put my version of the same new (as of last January) loco on the tracks last weekend. It's running poorly....herky-jerky, lots of starting and stopping. Oiled up all the usual spots with a drop, checked the grease reservoir (full), and filled the smoke....same result.
I'm hesitant to start breaking into it, so I'm heading back to the dealer, about 40 miles away, tomorrow. Good guys, guessing they can and will fix it. I love the loco and will likely buy the matching passenger cars as an upgrade from my O27 Lionel cars if they do. Disappointed, but not upset. My other 5 Rail Kings are running fine.