fondo,
I’ve done more than a few OMI’s, so I’ve been down that road before. BTW, only two of your pics show up…the third won’t load.
First, have you ever done a hard-wired decoder install before?
Second, do you want working headlights?
Third, are there ditchlights and do you want them to work properly?
Neither decoder will help you if you want ditchlights. You need a DH163D or DH165D for that. Otherwise, the DH121D would be okay for this loco if you just want front and back headlights. The DH163IP has a plug on it, and would be worthless for this OMI engine (unless it has a plug on it for DCC…and I don’t thing OMI ever did that).
When installing a decoder, the first thing to do in this case is to unplug the lighting, then remove that PCB (printed circuit board) with all the DC lighting components on it. IOW, cut all the wires leading to the board from the various lightbulbs, leaving as much wire as possible on the bulbs.
Before doing anything else, mark the underframe to indicate the forward end either with a marker, scribing it, or some tape.
Next, you have to disconnect the wires from the motor, either by cutting them or unsoldering them from the motor. You may have to pull the motor out to get at the lower soldering pad, or you could try to leave some wire on the motor for a connection later.
At this time, you should also cut the truck wires, leaving as much wire on the trucks as you can. You’ll need them later. You should now have both trucks totally isolated from each other and the motor, with the motor isolated from anything else.
Get the decoder out, and you’ll see it has 9 wires on it: black, red, orange, gray, blue, white, yellow, green and purple (not in that order). Black & red go to the trucks, orange and gray go to the motor, blue is the common for all lighting, white is for front headlight, yellow is for rear headlight, green is for Function 1