Noob question about new engine

[James in FL]

Agreed.... We were all newbies once, stick with it.

Most folks here will offer constructive help when you ask, so don't be shy.

As to the power supply that came with your set, yes, we are running on 12vDC to the track.
Running 2 lokies at the same time with it, is about the upper limit of its capacity.

A multimeter in invaluable when troubleshooting.
You don't need an expensive one, we are not building communication satellites here. 
They can be had for <$20 from several sources including Harbor Freight, Lowes, Home Depot, Walmart, etc.
These work fine for what we are doing here in the hobby.
Look here for the very basics of using one to get an idea of what I'm talking about.

http://www.trainelectronics.com/Meter_Workshop/index.htm

Another must have tool is a Standards gauge. Sources are your LHS or an online e-tailer.
Look here;

http://www.modeltrainstuff.com/NMRA-98-8-Standards-Gauge-N-Scale-p/nmra-98-8.htm

Last thing... bookmark that Spookshow site, it's a great resource for us N scale junkies.
Let us know how all this works out.

Good luck