S2 switchers talk: Marx, K-Line, RMT versions...

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Do you like S2 switchers?
Lately I'm finding them to be a nice size, relatively inexpensive, loco that can be used easily with both 027 and O scale rolling stock. I currently have the earlier Marx version of this body and also the later RMT 'Bang' one. The Marx one does not do well on Lionel switches however, as it has 'fat' geared wheels and slider pickups instead of rollers. (All the various shell bodies do appear to come from the original Marx mold tho...)

I recently picked up the K-line version on ebay; a new looking, very sharp, bright orange and white ILC version. But I do have some questions re this K-Line S2:
The small square switch underneath looks to me like it might be a 'forward-only' thing, but when I change it the loco only changes from the standard operating F-N-R cycle to just sitting in neutral. Is this a defect or do I have the wrong idea about this switch?

Also how does one remove the body shell on the K-Line S2? (I want to improve it's very weak headlight..) Is it the four screws found in each bottom corner, or are there other things to undo?

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