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I have had to 5 of my 7 AR-1's - which use mechanical relays I believe - as they did not trip reliably in my applications where I run a variety of power with a variety of power draws...anything from a single Kato or Atlas unit to 4-5 Lifelike units. After messing with current threshold settings on the boosters and PM42s for the power districts where the A/Rs were being used, I just replaced them with solid state units from Tony's Trains. Sicne then I have had no problems. I believe these reversers are now being sold as PowerShield X by DCC Specialties but I could be incorrect.YMMVmd
When metal wheels bridge the gap between reversed-polarity rails, the short is directly though the wheels, so the current draw through the motor is essentially irrelevant to the question. The trip setting should simply be a bit above the maximum draw you'd ever expect to see from a consist. For N scale, 2.5A is probably fine.What WILL cause a problem is inadequately sized wiring, loose terminations, or bad splices or solder joints. At 12V you only need 5 ohms of resistance to drop the current draw for a short below 2.5A. 5 ohms is nearly nothing; you wouldn't likely notice it slowing down your trains. But it will affect the reverser.This is just speculation, but with the jumpered wiring mentioned above, I would wonder if there might also be a parallel or incorrect path for short circuit current. If not all of the short circuit current is traveling to the correct terminals on the reverser then that would be a problem.