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Yes, to me this is a typical symptom of poor (intermittent) electrical connectivity between the decoder and rails.So, wheel treads, axle points and bearing cups in the truck, the pickup strips and the metal nubs on the truck sideframes, and the connection between the frame and decoder.Also, which run of Kato F7s is this one? Over the years, there were multiple designs of the chassis. Some have more reliable pickup scheme than others.As for the metal blackenign coating on the wheels, The only prolem I have seen was Kato GS-4 4-8-4 in te American Freedom Train colors. This one had distinctly different wheel blackening that all the other Kato models. I had to remove it to bare metal to get reliable connectivity. All the other Kato wheelsets (Steam, deisels, passenger cars) have different blackening coating which does not seem to affect connectivity. If you have one of the Minitirx/Marklin wheel cleaning brushes, that does a good job cleaning the treads.
Thanks Pete. I actually bought one of those brass wire wheels that Dremel sells. If the problem persists I guess that will be my next step. I don't seem to have to worry about wheel break in because most of the stuff I buy is retired runs from Kato used. So the wheels are well worn in. I guess that's a sign to keep buying other people's used stuff for twice retail price I appreciate the tips. After I put some more run time on it I will update this post and if someone else runs across this issue they will know what's causing it. I guess every batch of wheels from Kato can be a little bit different batch to batch with the blackening. Maybe this was a batch that had a little more than normal