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Are we certain it isn't one of the later ConCor/China Hudsons?
Well, here's my unsolicited opinion.The motor should be replaced. The motor from the later ones doesn't just drop in, but it's close with some frame filingThe herky jerky operation is most likely due to spotty electrical pickup. You've only got the 6 drivers, and 2 of those have traction tires. If you hotwire it with some thin wires and clip leads, see if runs better in fwd and rev.If that photo is the way you ran it, it definitely looks out of quarter. The front driver is rotated forward more thanthe rear driver. Look where the crankpins are. I'd have to see the other side, but assuming the front driver on the opposite side is ALSO rotated too far in that photo, you should be able to fix it by removing the gear plate, gentlylifting the front driver axle out and rotating it one tooth on its idler gear backwards and dropping back in. Keepingthe other two drivers still while you do this is the tricky part.The flanges on those 1st gen are big, too. I don't think they can squeak by on code 55 rail. The paint chips offthe metal wheels, and the rods short to the wheels sometimes as well.The bottom line is that this engine will never run like the 2nd generation ones. I know you just got it, but honestly,I'd pull the plug on it. If you want a Concor Hudson, seek out the ones with gray plastic side rods and a wired tender.
You are most welcome.Are your streamlined ones from the later releases? I don't think Con-Cor did any of those, like the NYC Dreyfuss Hudson version, until the 2nd version. That would explain why they run better.The 2nd locomotive I bought in N Scale was a 1986 Con-Cor/Kato Hudson. (The first one was a Bachmann "white box" 0-6-0 that we don't need to talk about, ha ha). That engine is the reason I didn't bail on N scale. It convinced me that good running engines existed in the scale.