I recently installed a DCC chip into a Kato NW2 switcher.  Due to the construction of the model I had to use a N scale decoder from NCC (this is the fourth chip I have used of theirs with excellent results so far).  This is not a project I would recommend for a first install as it required milling out a section of the frame in order to place the decoder.

Notice in this picture the two black lines on the frame, these are to show the lines I milled between to create room for the decoder.  Also look at the cab and notice the two brass tabs coming down at the back, these are pickups for the LED and had to be shortened in order to solder the wires from the decoder onto.  For the front LED I scraped the portion of printed circuit board from each lead and then soldered the decoder wires onto each side.  Note that the LED will not work if you get the wires onto the wrong one (something I figured out the hard way).

Here is the picture of the chip installed into the frame, with only the motor leads in place:

This picture shows the shell in place after the decoder has been installed, note that the leads for the rear LED have not been soldered to the tabs on  the cab, and also that I later moved the pick-up wires (red and black) down to the pickup for the trucks.

I was finally able to get the decoder to work correctly, along with both the front and rear LEDs.  This has been one of the most difficult decoder installs that I have done to date – and I welcome any questions about this install.  I will do a full review of the model once I have installed all of the detail parts on the model.