To install the LokSound micro V3.5 decoder and 2 small speakers in the AZL Z-scale Challenger, was a challenge, but it worked out pretty well. I managed to place all in the tender. The inspiration for this, is found in this thread on TrainBoard, where David L in California showed us his conversion.
The hardware is installed, with warm-white LED's for front and rear lamp and also a red and yellow LED's in the drivecab, to simulate the flickering from the burning. Some adjustment in the setting of the lights, etc, are still to be done.
Here some images showing the process: