If the pickups are sparking, that's a clue that the problem is in the track power, not the switch-motor electrics. But, just to be sure, with the train not there, try touching a wire between each insulated control rail and a regular outside rail, to see whether the points move properly, without (more than a very little) sparking. You could also push a car across the trackwork by hand if you like; but it might be a little harder to see any sparks.
If that's okay, then describe for me how you have the track powered. Is there a change from one transformer output to another as you change loops? For example, is one loop powered from the A output and the other from the D output of the ZW?