RRDOC, The ERR method for an upgrade on a 3rd Rail engine from this time is best way, including economics, to do it. As for the chuffing rate, two magnets on same wheel for the reed switch does sound good. I have upgraded my early 3rd Rail engines, St Fe and GN 4-8-4s, and the SP cab forward. I do like the sound two magnets gave the SP cab forward.
An idea for all to consider for simulation of the slippage: Install a second speaker, drive it from same sound board but with a timed delay. Delay circuits are not that hard to do, and if made to be random, it would simulate this quite well.
But for me, I have found that ERR upgrades to my early 2000 time frame 3rd Rail engines is best way to go. Do not require strobe and reader on the can motor, very easy to perform installation, great support when necessary, and costs are very doable in today's terms. And I doubt you will ever regret it, I know I never have for MTH, 3rd rail, Williams and Lionel/K Line I have done.
Jesse TCA 12-68275