Well, brothers, I couldn't solve this issue, so I sent the transformer to Chuck. Here is his description of the problem and solution: The problem was the leaf contact on the reversing button. Had a 1/16" gap between contacts when assembled. When out or not fully mounted it looks good, until the pegs that hold in place on the coil bracket, then it pulls the contacts apart. Checked whistle and other circuits. Good. I never would have figured this out,. So now I have the transformer back from Chuck and it works fine. The whistle and directional unit work well too. I am not sure exactly what a leaf contact is, so it is hard for me to picture what Chuck was describing. I repeated it here so that all of us may benefit from a solution to the mysteries of this cantankerous transformer.
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