Before i place an order for an N700 (4 car) and some dcc decoders and interior lights, i am wondering if cars 1 and 2 can accept interior lights too? I know they have Head / Tail lights installed and i am going to get 2 x FL12 decoders for these. But i am unsure as if the front and rear cars can accept interior lights and the FR11 decoder?
The Kato light set consists of a LED on a light board that goes at one end of the car (along with some copper strips that connect it to the under-floor strips that get power from the wheels), a plastic prism that clips into the top of the car, and a strip of reflective tape.
You'll need to cut the tape and prism to fit in a cab car, but it should otherwise fit, although I haven't installed on in an N700.
The FR11 decoder is probably only needed if you want to be able to turn the lights on/off via DCC (it replaces the light board). I have used the lighting kit without an FR11 on DCC and it works. However, I haven't used it for an extended period (my layout is still DC, and I only have one train equipped with DCC so far). And there's a possibility of overdriving the LED, particularly if you use a full-power (16v) DCC system, if it's getting too much voltage.
Most DC power packs put out 12-16 volts, so it shouldn't be a problem. However, I think Kato's DC power packs put out 12 volts, and the Digitrax Zephyr they recommend puts out 14v, while some DCC power supplies can put out 16-18 volts. So there is a risk if they cut the tolerances close.
The photo below shows the light board below one of my E231 cars, with the prism and tape installed. You can just see the copper strips sticking up at the right end of the car.