The "Cliff Notes" version...
The MTH HO smoke unit, AA-1600000 is used for the conversion. I mount the smoke unit on a small piece of fiberglass and secure it to the base of the caboose. I extend the stack with a brass tube to the existing stack. A small adjustable AC to DC switching power supply from eBay provides the power. For the fan motor, I included four series diodes to drop the voltage to the fan motor, it likes to run around 2-3 volts. I've found the smoke unit works well in the 4-5 volt range from the power supply, hence the diodes to reduce the voltage to the fan motor.
It's important to mount the smoke unit directly under the existing stack so you can easily add fluid.