Well today I finally had some time to do a good amount of testing on the layout. Tonight I discovered something very interesting. Up to this point I had connected my test track only to Fixed Output 2 of the TIU. I started moving the track connection to the different terminal blocks. First I tried Fixed Output 1. I got a perfect 10 DCS signal with the Legacy Base plugged in to power and the "one wire" connected to the Fixed Output 1 terminal block common. I left the "one wire" connected to the Fixed Output 1 terminal block and I moved the track wire to Variable Output 1 and then Variable Output 2. In both of these cases I got a perfect 10 DCS signal with 1 PS3 engine and 1 PS2 engine powered up on my test track. So then I setup a second test track. I moved the 1st track connections back to Fixed Output 1 and I connected the 2nd test track to Variable output 1, leaving the "one wire" connected to the common of the Fixed Output 1 terminal block. Again I got a perfect 10 DCS signal with 1 PS2 and 1 PS3 engine on test track 1 and 1 PS2 engine on test track 2.
So, at least it appears that the issue is only on Fixed Output 2 of the TIU. As soon as I unplug the power to the Legacy base the signal on Fixed Output 2 goes to a perfect 10. I still can't explain what's causing it, but it seems it is only affecting 1 TIU output instead of all 4.
I'll be curious to see your input on this and if this info helps anybody else dealing with this problem. Thanks.
Michael