I had the exact same issue start happening to me over the weekend.
I bought the engine new in 2002 and has run great till recently. The sounds cutting out for fractions of a second do not seam to be related to curves, and I also notice with the smoke unit on, the light start to dim on chugs.
Wish I knew if it is a bad board or something simpler.
I have not taken it apart yet. If it were not for the lit drivers, I would have no problem upgrading this to a ps 2 3v or PS3 myself. I am just not sure how to deal with powering the 7 lights the engines has with a standard upgrade kit.
Mike
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