For steamers I use WARM while, slight yellow tint. For modern locos I use bright white.
I have been getting my LEDs( 1.8mm with resistor and leads attached) from evermodel_es on ebay. Good price & great LEDs IMO, about $12.99 for 20. In some tight spots I strip the wires and resistor and use the bare LED.
For tight spots or locos that had no lights when new I use fiber optics. Holding a lighter near the end will form a great lens. A little practice makes PERFECT. I have fiber optic cables ranging from 0.5mm to 2.0mm. BTW I form the lens FIRST, before cutting it to length. That was, if I make the lens too big I just cut off the end and start over. The last thing I do is cut the fiber optic to desired length for the install.
Sometimes I use BLACK heat shrink on the fiber optic headlight (inside the loco) and another black shrink tube over the LED. One (smaller) slips inside the other(larger) and makes installing the shell easier and reduces light leaks.
Fiber optics are GREAT for model RRing. One led can light a bunch of fiber optics say for a building etc. I also use fiber optics for FREDs and caboose lights. (one red LED and 2 tiny fiber optics inserted into tiny holes (in the rear lanterns).
For FREDs I put the (radio-shack flashing red LED) LED in the car and run the fiber optic out the back center at the floor bottom. I gave up on battery power and went to track power. I use wheel set that are insulated on one side ONLY and make wipers using stripped 30 gage wire-wrap wire by coiling it around both axels on each truck. I make both trucks the SAME. Remember the trucks when on the car , one runs backwards with respect to each other, so they will pick up separate rails in normal use.
I am a N scalle'r and run mostly DCC, so LEDS always light. If you need a light on for BOTH forward and reverse running on analog/DC just light the fiber optic with 2 LEDs, one for each direction.