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First I want to retrofit the existing light bulb to an LED. How is that accomplished?
Second want to add light at opposite end of locomotive so that when the locomotive is reversed there is a light on, how is that accomplished? Any guidance and or reference(s) is greatly appreciated.
Are you running DC or DCC? LEDs are already polarity specific devices so all you need to do is hook them up with resistors and the light will be directional. The problem is that LEDs, unlike bulbs, will not light until they get to a certain voltage (3.5volts or so)
I'm running a DC layout. RS2 is an AHM from the 70's
Do you have a reference I could consult for a schematic of the LED and resistor layout. There are currently no resistors on the locomotive.
Are you converting this locomotive to DCC?
No, its an old AHM unit non convertable.
Anything is convertable if you want to bad enough! 
Wiring LEDs is pretty simple. There is a long leg, and a short leg on the LED. You'll need a resistor for each LED. On the front, the long lead (anode) goes to positive side rail, the short lead (cathode) to negative. The rear LED would be wired opposite (anode to neg, cathode to pos). The resistor doesn't care which leg it's on, though I usually put it on the anode side.
When running forward, the front LED will light. In reverse, the rear LED will light.
If I have something wrong here, I'm sure one of the electronic wizards will chime in and let me know!
Rotor
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