If the rails are rusted or more heavily damaged where the locomotive jerks, I would consider buying new track as a replacement. I had this problem with some O-36 with my newer locomotives where it was so worn down, I had to buy new track. I would go with either Lionel 027 tube track, Fastrack, or MTH realtrax. If you really want to go the extra step of track, get Atlas O 3 Rail track or Gargraves. Even if they are more expensive then fast track or tube track, they will last longer and look like real track. As for the lock-on, if this is the original, replace it if you stay with tube track. I would not get any track larger than 036 track if you replace it for this set as it is a 2-4-2 compared to say a 6-8-6. I would open the unit up and check for any loose wires, or even take it to a local hobby shop for an inspection.
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