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Hi Steve & welcome to the forum.
First thing to do is to make sure that the locomotive is running 100% . Check that all the pickups are in order & the motor is nice & free running. Make sure that the motor does not run hot. A good X04 will run well on DCC with a decent decoder.
Remove any capacitors/supressors (usually a small disc thing, often a yellowy/orange colour).
Connect the red wire on the decoder to the insulated pick ups.
Connect the black wire on the decoder to the chassis.
Connect the orange wire on the decoder to the motor brush that used to go to the pick ups.
Insulate (most important or the decoder will fry) the other motor brush & connect it to the grey wire on the decoder.
As it's unlikely that you will need any of the functions insulate the remaining wires from the decoder.
Remember - a good runner will run better on DCC, but a bad runner will be worse.
Hope this helps.
Please let us know how you get on.
First thing to do is to make sure that the locomotive is running 100% . Check that all the pickups are in order & the motor is nice & free running. Make sure that the motor does not run hot. A good X04 will run well on DCC with a decent decoder.
Remove any capacitors/supressors (usually a small disc thing, often a yellowy/orange colour).
Connect the red wire on the decoder to the insulated pick ups.
Connect the black wire on the decoder to the chassis.
Connect the orange wire on the decoder to the motor brush that used to go to the pick ups.
Insulate (most important or the decoder will fry) the other motor brush & connect it to the grey wire on the decoder.
As it's unlikely that you will need any of the functions insulate the remaining wires from the decoder.
Remember - a good runner will run better on DCC, but a bad runner will be worse.
Hope this helps.
Please let us know how you get on.