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I have cleaned the contacts, put in fresh batteries, and cleaned the wheels on these diesels.  These are O gauge postwar diesels.  I have a ZW transformer.  The horns make a buzzing sound.  It appears the contacts and/or relays are not cooperating with each other. 

There is a Lionel repair place an hour away from me.  Does anyone know of anyone in the Central New York State area that might be able to help me, or can give advice on this issue?

Thanks.

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Thanks for all your help guys.  My local train guy and I talked about what might be wrong, and then I got some heavy grit sandpaper and cleaned contacts where I had used a screwdriver to activate the horn (it worked then) and used the sandpaper to rub the contacts, and voila, the horn worked.  But:  I put the 2363 on the track, and while the horn worked, the diesel didn't run.  I looked and a wire going to the E had broken.  I now have to solder the wire, and hopefully the diesel will run, and the horn will work too.  I'll post after I solder.   

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