The basic changes are in the config file of the loco. Some diesels also use custom scripts that may require changes but that's on a case by case basis and you'd have to review the code in the script if it's not encripted.
Fuel and water are usually carried in a separate tender. Connecting any (working) tender to the loco will suffice or if you want it to work as a tank loco then you add the 2 required queues, load-coal and load-water, to the locos config. [As to where they'd actually fit on the "real" loco you could use an oil fired boiler so the fuel goes into the existing fuel tanks. The diesels and generators get stripped out so we'd have some room inside the shell for a boiler and water tank. The old ACE 3000 concept used a diesel like shell and they used a separate tender carrying makeup water and condenser and used pulversied coal in containers that was burned in a fluidised coal bed firebox.]
You need to select a steam loco cab (interior) and reference it by changing the reference in the loco's interior tag.
You need to select a steam-engine engine spec and reference it by changing the reference in the loco's enginespec tag.
You need to select a steam loco engine sound and reference it by changing the reference in the loco's enginesound tag.
A new stream whistle should be selected and referenced by changing the reference in the loco's hornsound tag but this is not a required change.
One of the bogeys should be designated the main one and the direct-drive 1 tag added to it's config so the steam sounds are sync'd to the wheel rpm. Since the same bogey probably is used for both I'm not sure how Trainz will handle that. It's always possible to clone or alias one so only 1 gets the new tag if it is a problem.
A diesel's drive wheels and drivetrain compare more closely to a geared type steam loco. These may require some special considerations in setting up the steam-engine spec and engine sounds.
Off the top of my head that's what I think is required.
Bob Pearson