Brand new train bought this month engine will not move on the track

If the animation does not work on your train set, turn the train car upside down and make sure that the wheels of your train car are making contact with the gears underneath the train car. Also, make sure that all of the car wheels turn freely without restriction.

I am assuming that the throttle is off when you put the train on the track. If off, then you are correct that there is an internal short in the engine. You might try disassembling the unit and looking for a pinched wire specifically from a roller(s) (center rail pickup). You might also check for a short between a pickup roller and a wheel with a VOM. Make sure the wheel is not the one with the neoprene belt.

There are 2 wires from the transformer to the power rail screws on the track. Hook up the wires and watch the direction the engine moves when you move the lever to forward. If the engine moves in reverse, either swap the wires or turn the engine around on the track.

Sounds like reverse contact is bad or not connected. If you can get to it, look to see if its connected or making contact

If your sure the loco contacts/wheels are clean and the track is ok then remove the loco bodywork and check the motor. You can apply a 12v supply directly to the motor contacts to test if it's running ok. If it does run ok then suspect and clean the brushes and associated connections. If it does not run try moving the motor armature manually. If it is stuck it is probably time to replace it. If it moves apply a light machine oil and test again.

Here are a couple of resources from New Bright:
http://www.newbright.com/public/electric-train-faq

http://www.newbright.com/images/Manuals/384%20ws%20manual.pdf

There is no On/Off switch on the train. Power goes from wall plug to transformer, then from transformer to track clip, which must be attached to the track. A control line goes from the track clip to the controller. Mine has a green light just above the red On/Off button that will come on even if the engine and tender are not on the track. The tender does all the work, and must be connected to the engine and on the track. There are four sliding contacts between the tender wheels that provide contact with the track.

There are bateries all over the place in this toy. two AAs in the remote, two button bateries in the tender and also two AAs in the engine, did you do the ones in the engine?

Make sure you the wheels on the cars are actually rolling and not sliding (being drug down the track) Most of the animation is down mechanically as the set moves.

Answer a number of questions:
Is the tranformer power adequate for the train and is it a working tranformer?
Will the train run by connecting the wires directly to the two points of the train (wheels and center rail connector)?
Are the tracks new?
Is the lockon new?

CHECK FOR SWITCH ON BOTTOM OF TRAIN