I too have this model but I finally, after years of ownership, had it upgraded to PS3 and it performs so much better. PS3 or Legacy are the ways to go now.
Yes. The engine does have synchronized chuff, albeit not prototypical, since it chuffs twice per driver revolution instead of 4, although back when that engine was made, a lot of the Lionel engines chuffed 2 times per revolution. The sounds are the older Lionel railsounds card. Pretty sure it’s the old “Atlantic” sound set.