Rob;
Yes they usually dim the headlights when approaching a station or another train on parallel track.
The Classification lights normally are not on during the day. Flags would be showing by day, lights only at night.
If classification lights are showing or flags by day; green would indicate that there is a second section of the train following. White would indicate that the train was an extra train, not on the timetable.
Red would only be used if the loco was running backwards on the tail end of the train.
What we really need in large scale railroading, is a supplier to develop a scale set of flags for locomotives, as most of our running is done during daylight hours. It would help if the same supplier could supply a good pair of flagholder castings that we could apply to our locomotives, as few if any, come equipped with them.
There is another “Lighting problem” on most model locomotives produced today.
At night, cab lights are seldom seen from outside the cab, as the light would ruin the engineer’s night vision.
Flickering firebox lighting is seldom if ever visable from trackside, but the “Lionel Types” all seem to be overjoyed with these lighting effects; even to having all the three colours of class lights shining all the time. Seems that manufacturers even call these class lights “Markers” even though marker lights are on the rear of a train.
Modern days see very little if any use of class/classification lights/flags as dispatching and train ordering is very different today. Even the marker lights are almost never seen, as cabbooses, have been replaced by “Flashing Rear End Detectors” (Fred’s), or in some instances just a red flad hanging on the coupler of the last car in a train.
New locos being built today sometimes (Almost all) don’t even come with class lights, except on special order.
The particular Diesel Hydraulic units you are looking at, would have the class lights, and any other lights that the particular roads that bought them wanted, or considered standard.