So after thorough testing, I can confirm nothing is touching the rails except the wheels and the rollers. I tightened up all the rods and screws. When I give it throttle on my Z1000, the loco doesn't light up and it makes a humming electrical sound. If I go more than half throttle it pops the circuit breaker. I think I've exhausted all my options for what I'm capable of. I spoke to my local model train shop and I plan to take it in Friday for repair.
Also of note, I did see some sparks Monday afternoon under the wheels when it was still running and smelled a burnt electrical smell. I'm guessing this has something to do with my issues.