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I'm just catching up on this. This whole replacement of LL wheels with Kato/Atlas is a popular one. I recently replaced some LL SW wheels with kato, and had to adjust the point lengths for this to work, after the suggestion by @peteski. (https://www.therailwire.net/forum/index.php?topic=33107.msg379288#msg379288) The Atlas wheels you speak of, you didn't have to mess with the axle point length? Are these basically the same as kato wheelsets?
The whole idea of using the Kato's new low-profile flange replacement wheelsets is to eliminate the sub-par Atlas wheels. Atlas wheels are made from plated brass. Plating wears off and the brass tread does not conduct electricity well (and gets gunked up fast). Personally I don't think that replacing Life Like wheelsets with Atlas is a move in good direction.
... I did notice that they were a snugger fit in the axle cups and the wheel gauge had to be set a bit narrower than the slots on my MT gauge for them to work ....
Actually, now that I think about it more, the wheelsets I tried might've come from an IM SD40T-2. However, I think those may be the same as Atlas wheels from, say, an SD60 but I'm not absolutely positive.
OK, I did a little more experimenting. First though, I agree, about the IM SD40T-2 wheels being the same as Atlas SD50/60 wheels, but maybe not all of them(?). I have a box full of what I thought was just Atlas SD50/60 truck parts and wheels and I found a couple Atlas wheelsets in there that had clearly thinner axle gears. These might've possibly come from another Atlas loco, as a quick glance at the underside of my SD50/60 series locos appear to all have the slightly fatter axle gear. Why does this matter? Well, I don't think the Atlas wheelset with the thinner axle gear will work in the LL switcher truck as the (already-increased) offset with what I think is called the truck's idler(?) gear appears to be too much with the thinner axle gear and it might slip off the side (more on this below). The nice thing about all this is that the Kato wheels from the 932090 set fit perfectly and snugly in the Atlas SD50/60 axle sleeve!
Another idea I am thinking about is to trim the long end of the Kato axle tube (using a new single edge razor blade?) to better align the gear with the Life Like idler gear. Then on the short side either use the sliced off piece as a spacer, or make (or 3D print) a spacer on the other side. Even though the axle tube is now shorter, it will still have plenty of contact with the other halfaxle.
I did the slice and dice on one of my LL SWs and it works fine. Kato wheels and spacer, spacer cut about 1mm on the "long side" and the axles reinserted with the gear being slightly more centered. They don't bind and run well.