I just spoke with Aaron from Lionel. He has been instructed to not issue RA's for the clicking/popping noise on these E8's. It is considered normal. Preposterous. I spoke with my dealer. He offered to look at the engines and see about a repair but admitted if Lionel says it's normal he's not sure what he can do about it.
So I guess my choice is either 1) have this E8 set on my layout as a monument to getting fleeced, or 2) get Visa involved which will (I'm sure) end my relationship with my dealer.
Great! Feeling really good about Lionel right now (yes, sarcasm).