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I've just done a batch of six Terriers with Lenz gold mini's. The client has a Terrier fetish ! The capacitors were all removed and each and everyone runs beautifully, and surprisingly quiet, I just lightly lubricated the gear with a little La Belle grease. It's probably worth while checking mechanically all is well. Perhaps
run the chassis without the decoder and see if it makes the noise better. Reinstalling the capacitors won't help you Mike. If you prove the chassis is quiet without a decoder, then look at the decoder and consider a change to improve performance. The wiring on some of my Terriers was a bit primitive to say the least and I replaced quite a lot of it.
 

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Mike I remember your Hornby Digital user aren't you ?. I drilled a hole in the cab of the loco and put the decoder in the coal space, I stress this was a Lenz mini gold, I simply don't know how they work with your system. All I can say is try another decoder. Given the age of the Terrier it's quite a cute little loco and they do run very nicely. So it most likely it's the decoder combination with this particular loco.
 
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