I’m a fan of putting the electronics in the tender, because it makes access for maintenance much easier. No need to disassemble the locomotive if something might go awry. There’s plenty of room in the Bachmann tender for a 3" speaker, batteries, and Airwire board.
A few thoughts…
First, replace the yellow LED in the headlight with a proper warm white one.
You can get away with using just the 6 stock wires that run between the loco and tender. The 2-pin plug is the chuff contact. I’m not a fan of Bachmann’s mechanical connection, so I’d be tempted to replce this with magnets and a read switch, but if it works for you, run with it. On the 4-pin plug, two wires will go directly to the motor, the other two will go to the track power input on the main PC board in the boiler. That will feed the headlight, cab light, and firebox flicker. (Make sure you disconnect the wires going to the pick-ups on the locomotive drivers.) With this wiring, the headlight will always be on. If you want to power the headlight off of the G3 headlight outputs, you’ll have to run an extra pair of wires directly to the headlight. The tender light can be connected to the G3, so that light can come on only when the loco is in reverse.
Call Bachmann and order the replacement axle with brass gear. While it’s not mandatory to replace the stock plastic gear right off, if you’ve got the loco torn apart, it might be a good time to do so. At least, you’ll have it on hand for when the gear does finally decide to give up the ghost.
Routinely check the screws on the counterweights, as they have a tendency to work loose.
Later,
K