Hey everyone! Recently I purchased the Santa Fe set from the local model store which included a Baldwin 2-8-0 with onboard DCC.  Just to make sure the engine worked, they connected it to the in store model layout to test it to see if it worked on both DC and DCC.  (They were really thoughtful!)
Currently I use it on a small temporary DC layout.  For the week I've had it everything has been running smoothly until tonight when I came to run it around the track, there was this terrible grinding/squeaking noise whenever the train moved forward.  The noise does not happen when it is in reverse.  I know for sure it is coming from the wheels.  I checked the bottom and nothing is sticking out and interfering with the tracks.  Unfortunately I think it is an internal problem.  Any suggestions on what to do?

Thank you so much for your answers everyone!  I think to avoid any risks to just use a DCC layout.  It will probably clear up alot of confusion as well.  The only problem now is that now i have to end up installing DCC decoders into the engines I plan to buy.  (I'm a sucker for Thomas and Friends/British railway models)

Thanks again and one more quickie...
How would you install interior lighting into a passenger car/caboose? (step by step instructions)  Would I use a LED or is that too bright? Will I have the option to turn them off during the day using DCC?

Thanks alot! 

So you are saying that I should get 3 different powerpacks (the modules that control speed correct?) for each loop?  Also if I wanted a train to switch track I would have to set all three loops to go in the same direction unless I purchase an MRC unit? 

Sorry, I'm quite slow at this.

Also, if I plan to convert my layout into DCC power if needed in the future, is it just in the matter of replacing the powerpack and locomotives?

I really do plan on getting thomas engines but I have to ask, how many owners of them here have DCC installed on them ? Also, I  was watching a video on youtube...

hxxp://www.youtube.com/watch?v=-_L8ofAFJUw

And from watching the whole video, can anyone tell me if this person has a DCC system installed into the engines?

I also have a question regarding DCC.  I haven't had a model railway since I was around 6, (which consisted of just one train going in a circle).  Right now I am 14.  I really do plan on starting again but have quite a few questions.  After reading this thread I decided to just stick with DC, as I only plan to have 2-3 locomotives .

My question however is that if 3 separate railway lines going in a loop, but all connect with one another via switches, will i only be able to run all of those lines in only one direction since I only have DC or will I be able to? 

Thank you very much