Bluesheepbrian, It's been a while since I looked at what was causing my issues so I had to just pull out a Beep and an O27 switch to play around a bit. This may not be all of your issue, but the rollers on a Beep strike the outside rail as they pass through the switch. It's at the spot I've circled. In fact you can see some damage on my switch that was probably caused but the rollers making contact.
This obviously shorts everything. Move fast enough, which beeps aren't really good at, and you might glide past it and keep going.
My temporary solution was to put electrical tape over that rail. It allowed the beep to get through without the sparks.
