Since this product is G scale, try the Garden Railways magazine forum, too.
Is this the manual you say you found on the Lionel site? http://www.lionel.com/media/servicedocuments/78-2007-250.pdf
If you have everything connected like this documents shows, then my best guess is that you have a defective product and now know why it was for sale.
Unfortunatley, I don't think you can count on Lionel Corporation for any help or parts.
Ted, the bulk of Lionel users are on the "Classic Toy Trains" section of the forum, you will get much more response over there. Most of the folks on this section are smaller scales, HO, N etc and don't use Lionel.
Simon Modelling CB&Q and Wabash See my slowly evolving layout on my picturetrail site http://www.picturetrail.com/simontrains and our videos at http://www.youtube.com/user/MrCrispybake?feature=mhum