It looks like you are using Atlas track so I am assuming you are also using the Atlas controllers. If that is the case, simply swap the red and green wires on those controllers where the buttons have the "wrong" switch track direction.
I use SPST Momentary On toggle switches (specifically Gardner Bender #GSW-117) mounted in the fascia board with the "up' position of the switch indicating "normal" (i.e. "mainline")* and the "down" position indicating "reverse" (i.e. "diverging").


*note that "normal" or "mainline" is not always the straight position...

I haven't been in the Red Caboose for close to 30 years, but I can see they have not changed one bit in all that time.....

Now that the 10 Wheeler has been released it is obvious that Bachmann has developed a reliable motor small enough to fit into the boiler of a Vintage Steamer. Since this was supposedly the problem holding back the Russian Decapods a few years ago, can we expect to see them revived??

I converted all my crapidos to MicroTrains about 12 years ago and I am very glad I did. there is no comparison, both in  reliability and appearance, not to mention operation. One thing though: You would be amazed at the difference between locos from the 80's and the ones from today. I have 3 of the Atlas/Rivarossi Pacifics and even though they are an easy conversion (MT sells a conversion kit containing a new pilot with coupler and a replacement tender truck with coupler) at around $15.00 for the kit it is not a cheap conversion. The Atlas 4-6-2 are not very detailed nor are the motors particularly durable. In other words. I would not do that again. Look at the Model Power Pacifics, a much better loco and cheaper to convert. In your position, the only loco I would convert would be the Spectrum Consolidation (it takes an MT 2004 IIRC). The new Bachmann 4-4-0 is lightyears ahead of the one from the 80's and comes with a compatible dummy coupler (it may even come with the new knuckle coupler by now). The rolling stock would be worth converting though. for the 1860's cars, MicroTrains sells Archbar trucks with couplers attached, ditto for the passenger cars. The freight cars I would recommend cutting the coupler pockets off the trucks and installing body mount MT 1015's...

I got a N&W "J" recently and it seems to run fine even on 11" radius. Have you removed the little piece of foam packing they put under the trailing truck at the factory?? If you haven't, that is probably your problem right there.....

I have one of the first run (LifeLike) Y3's and it can actually negotiate a 9 3/4" radius curve. No idea about the Athearn, although Mark says it can handle a n 11" curve...

http://www.visi.com/~spookshow/athearn4664.html

Just got an email from Pete at BLW confirming shipment of my pre-order...

Just checked MB Klein's website. No 4-6-0's there......

Have you tried ebay???

I believe that this is a connection unique to Bachmann. I certainly does not look like the one on my Walthers/LikeLike 0-8-0. Probably for use with B'mann's DCC equipped steamers; but I am sure it could be made to work with other locos .You might want to contact the Parts Dept to find out id they sell the connector/harness assembly separately; which I am fairly sure they probably do. If my memory serves me correctly, there was a discussion on this board a few months ago about finding the connector from an outside source. Maybe the Bachmann can let us know....

Ahh! Here we go:

http://www.bachmanntrains.com/home-usa/board/index.php/topic,13203.0.html

If you look at the lower right corner of the circuit board (going by the orientation  of your pictures), you will notice two jumpers.  After you remove these jumpers, you will notice a number of neat little holes which are appropriately numbered and lend themselves very nicely to soldering the appropriate decoder wires to the circuit board, much like the circuit boards found. for example, in the Spectrum SD-45. This is not a plug-and-play installation but requires moderate soldering skills.
For neat little pictures showing where all the wires go, see the Atlas Forum:

http://forum.atlasrr.com/forum/topic.asp?ARCHIVE=true&TOPIC_ID=50376

The circuit board allows you to wire in a decoder. much like the circuit boards on "DCC ready" diesels......

The draw bar can be modified to work. See Mark's notes and the photo near the bottom of the review..

http://www.visi.com/~spookshow/bach262.html

Not only is "smoke" messy, but it looks extremely unrealistic. Many decades ago when I still modeled in HorriblyOversized, I had two "smoking" steamers with Seuthe units.  All you get is a little wisp of smoke for about a minute or two and then you have to start the messy process of re-filling.  Leave the smoke to the Lionel tin-plate crowd, it probably goes great with the missile launching flat cars....

Used to be another place in the basement almost directly across thw street from The Red Caboose, but I think they are closed now. Polks is also no longer there....