When I sent it in for repairs it was to replace one of the can motors. The locomotive took off at full speed once I applied track power. Turned out that a magnetic ring on one of the motors shattered so the motor was replaced.
I'm thinking that something is jamming up the gears or motor, too.
Lionel replied, like they always do the next day (Great customer service, by the way), and asked me if I'd like to send it back for repair. $60 labor plus whatever part(s) need replaced. No big deal. I've done it before and I really like this engine, probably more than my LEGACIES.
This loco has Odyssey I speed control so it only runs in 32-speed step mode. I've been kicking around the idea of replacing it with an ERR Cruise Commander which should smooth out the low speed jerkiness. Presumably, since it needs repaired anyway and is not under warranty (manufactured in 2001) I'm going to check with Weaver Models to see if they can fix whatever is wrong and install a Cruise Commander since they offer this service for like $155. Lionel will only fix the issue I reported. I'm pretty certain they don't offer upgrades.
A quick look at the underside didn't seem to reveal any anomalies. The gears are greased and the axles lubed.
