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The SD40-2 is DCC ready and uses a DN163K1B from Digitrax.
The "new" frame does. First run 40s, 40-2s and 45s have frames that require some milling.
Just the 40s and 45s, the 40-2 has always been DCC ready. The first run of them was in 2000.
Why not use those light board DCC chips that do not require milling?
A TCS CN-GP would work. ... No metal would need to be cut to fit the actual decoder. ...
Here's a link to an installation: http://www.tcsdcc.com/public_html/Customer_Content/Installation_Pictures/N_Scale/Kato/SD401/Kato%20SD401.html