Those photos are helpful. The circuit boards do not look like the usual ones:
http://www.katousa.com/images/928030.jpgBut it does look like a K0D8-D might fit. I can't say for certain without measurements and a test-fit, though. Otherwise the link you mention appears to be a good resource for your project. They are using a Lenz Gold-mini for the decoder, although the Silver-mini is the same size and less expensive. In which case the M1
may be too thick, depending on the amount of space between the circuit board and the top of the shell. A Digitrax DZ125 has approximately the same dimensions as the Lenz decoders, and might therefore be a good choice.