Thanks guys,
The iron wheels are a darkish gray in color (I called it pewter) except where the rails touch on the bottom and those thin strips are a silver color.
Hard to believe this engine was run that much, since the rollers look brand new and original and the engine runs great.
The 1/16th play is while sliding the driver wheels and axle side to side. There is no play in attempting to move it front to back.
I am starting a new post tomorrow in the Lionel section, and will post pictures.
Thanks again.
Mannyrock