I had the C-liner version of the same drive, but didn't need it for my layout, so I sold it. From the looks of it, there's a lot of grinding needed to make room for a chip. Once you're over that hump, you just need to get the wires where they need to go, and figure out how to drop an LED in the nose somewhere.
For all the hassle, I'd just buy a newer Kato or LifeLike PA. The shells are probably nicer, too.
Lee