Steve,
There's only one position that e-unit should be in. In the first pic.....the lever should be all the way to the right so that the contact on the lever is touching the e-unit contact. As RJR stated....if it's off that position, the engine can't switch gears. You only move it off that position if you want to fix the engine in one "gear". Personally, I never do that unless I'm double heading two PW engines.
Roger
