You should see how far they stick out the light castings on the 0-6-0T....
A 1.8mm LED should fit, if you don't want to mess around with SMD LEDs - which you cna get with wires already soldered on but they are still dlicate and need care in threading the wire through. Ones marked golden white should be approriate in color. Evans Designs has them with resistors already installed, otherwise you need a 1K resistor (for well within the safe operating current for the LED) or maybe more if it is too bright. However - I suspec at a typical decoder output their 12V LEDs with the resistor built in will be too bright - they use a less than 1K resistor. Their 3V LEDs are plain LEDs, no resistor, you supply the resistor.
--Randy
Modeling the Reading Railroad in the 1950's
Visit my web site at www.readingeastpenn.com for construction updates, DCC Info, and more.
Evans Designs make some quite small LEDs from 5mm down to nanochips. They're a bit more expensive than some, but come prewired with resistors and such so you can use them with AC or DC, up to 19V. I've used some in remote trackside buildings by just connecting them directly to the DCC powerbus. Works fine!
http://www.modeltrainsoftware.com/ledlights1.html