I've installed Digitrax DH123s in both of my gensets. It requires a bit of minor surgery, but it's not too difficult.
What you'll need:
A DCC decoder - Digitrax DH123 or similarly sized decoders such as the NCE D15SRJ, or TCS T series decoders will work. It MUST be a decoder that plugs into a harness or else you won't be able to plug it in and route the wires.
A 9-pin JST plug to 8-pin NMRA/NEM harness with LONG wires. It comes with the Digitrax DH123P. The harnesses can be bought separately from Digitrax or TCS if your decoder didn't come with one. It needs to be the one with the long wires or else it won't reach!
Phillips Screwdriver
Patience
First, remove the shell, be careful with the wires though. If you break the wires to the headlights, it is nearly impossible to solder them back on due to the tiny pads, so be careful!
Before installing a decoder, notice that there are two wires going into a slot in the frame. Those wires go to a pair of capacitors mounted under the frame. If you do not remove those capacitors, they may cause unresponsiveness on DCC, and may blow your decoder!
So, unscrew the frame weight that holds the two capacitors. Remove the capacitors (they are held in place by double sided foam tape).
Take the harness, and route the 9-pin JST plug sideways through the slot into the area where the capacitors were. Be sure to route the wires with the 9-pin JST plug side, or you'll break the pins off the 8-pin side.
Take your decoder and plug into the harness, and plug the 8-pin part into the 8-pin socket on the locomotive taking care to orient the plug correctly. The socket should have a 1, an arrow, or some other indicator such as a square pad underneath to indicate pad 1, which is where the pin with the orange wire needs to go.
Now, carefully jam your decoder into the housing where the two capacitors were. It's a tight fit, so be careful!
Put the weight back onto the loco, screw it back in place, and put the shell back on. You're done!