Terry, sorry I haven't replied to your question until now. I did not see your post.
My BLI is a Paragon 2 SW-1500. I called NCE about the problem on the chance it had to do with the DCC system.
Their rep. told me it is a common problem with BLI.
Now... here's what's happened since I last posted:
I have cleaned the track and engine's wheels to an almost absurd degree

. I have also added four sets of feeders
but the problem persists. I contacted BLI and they are paying for me to send it to Fla. for repairs. Perhaps the most
surprising thing to me is because this engine has a DCC / DC dual decoder, my local train store owner suggested I
disconnect the Power Cab and try running it on DC. I did so and the engine did absolutely nothing! I used a multi-tester
and found there was power to the track but no headlight, no movement.
The engine will be on it's way to Fla. tomorrow and hopefully they'll fix it. While I can't say I will ever buy a BLI loco again,
I must say that they stand by their product. They promise they will do whatever it takes to resolve the issue. I'm not impressed
with their product but appreciate their great customer service.
If anyone has thoughts about the lack of DC operation I would be interested in hearing them (electronics are not my thing).
Thanks all