Thank you so much for the replies. I think I understand this better.
So, without the lever engaged, the train should run in its current direction. This indicates I have another issue as the train will sometimes run a complete circuit around the track, and other times it stops-starts-stops in a jerky fashion. I suppose, since the e-unit lever is loose, it could be swinging around and bumping the contact. I may try taping it out of the way to see if it will just run in one direction (I'd rather order all the parts I need in one go!).
Thanks again for the very helpful replies.