You have to use a DC transformer connected to your TIU just like you would if you were into 3 rail.
Do not use a AC power source if the engines are DC.
I run Ho using MTH engines with PS 3 with DCS. Powered with a MRC DC transformer thru a TIU, It works great.
ON the o scale engines I think there is a switch to go from 3 to 2 rail. Check with MTH to make sure.