GC has good advice above.
Here's a parts diagram for your 8632 loco (I think):
It looks like it does have an auto-reversing E-unit. Toggle the switch the other way ... hopefully, if the e-unit is working, that'll allow it to cylcle into "forward/reverse" mode via the transformer control. Also, a full transformer throttle-down / throttle-up should induce the same thing.
It looks like there's a smoke unit in the loco (though maybe this was an option)?
I do not see a whistle, though it looks like the tender originally mated to the loco may have had a whistle. Do you have that?
When you hit the whistle or smoke button on a Lionel transformer, it kicks out a DC voltage signal that's added to the normal AC power voltage. This DC component will activate the whistle or smoke unit. However, if these are inactive (or not present), you might see a small jump in speed in the loco itself.
Here's an exploded view parts diagram for your 5122 switch:
You might have a faulty switch motor and/or plunger.
OK ... my turn to ask the questions ...
So, how much does one pay to buy a "bushel basket of O gage Lionel trains" ?!?
Sounds like a great deal.