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Hmmmm....have you taken it back to the place you bought it (assuming it was a brick-and-mortar place)? If it's running only one speed, are you able to pull any cars with it? I can't imagine why it would be running flat out, unless there's something with your transformer. I know this sounds silly, but do you have the leads connected to variable DC instead of straight DC? If you do, then it may be a short inside the secondary coil of the transformer, allowing the full 12 volts to go to the tracks. You might take it to your LHS and try running it on a test track there. That would at least give you two indications - either it's the locomotive, or it's the power pack. My guess is that it's the power pack.
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