How to add a smoke generator to a newer starter set “Stainz” loco.
You can install a 65213 or 96578 Smoke Generator in many LGB starter set locos built after 1997. To install the generator:
  1. Carefully pry the safety cover out of the top of the smoke stack.
  2. Remove the two screws at the front of the gearbox near the front coupler.
  3. Remove the two screws at the back of the gearbox near the rear coupler under the coupler spring.
  4. Remove the small hex screws at the top of the vertical side rods.
  5. Pull the gearbox out of the chassis.
  6. Push the smoke generator into the smoke stack, connecting wires first.
  7. Plug the yellow/brown wires of the smoke generator onto the unused pins on the loco circuit board.
  8. Reassemble. Make sure to reinstall the safety cover.
For best operation, fill the generator halfway with fluid. If the generator is overfilled, it will not convert the fluid into smoke.

* Instructions courtesy of LGB or America