It appears you are set up on carpet...have you tried it on a flat hard floor or table? The variations in track level due to the weight of the locomotive on squishy carpet may be problematic. Can a soft large diameter spring be added between truck plate and frame? Not too stiff or you may loose traction. Otherwise i'd consider just shimming between frame and motor assembly or, more drastic, take a dremel to the bottom of the cylinder.
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