"All in all I feel like sending the $800 plus track, accessories, and set back and calling it quits. Not sure what Lionel is doing but this is not how you keep customers."
Before you do that, I suggest you discuss return of the unsatisfactory or malfunctioning products for exchange with your dealer. If your dealer isn't co-operative, it might be time to find a new dealer for any future purchases. Lionel has a good track record of making good on products that fail but haven't been abused, and that seems to be the case for you. I've never had a product missing instructions or key parts, so I wonder if you've been provided with returned products that aren't, strictly speaking, in new condition. As for the missing beard, well that's a separate issue you can take up with Lionel.