Funny thing, I have done that exact upgrade. I use the MTH fan driven smoke unit. Here's how I mount them, this is a different brass locomotive, but the process is exactly the same for your T1. I JB-Weld a spring on the bottom, then I solder a properly sized and length stack extension to the screw-in funnel for the smoke unit. You then slide the smoke unit in, and screw the stack extension in from the top after it's positioned. This allows for easy removal of the smoke unit for the inevitable maintenance later.
If you want to have the dual smoke stacks both active, I make a little funnel out of brass and shape it to the shell curve. I seal it with some sticky backed foam sheet cut to size.
Of course, for TMCC, I remove the stock resistors and use one 20 ohm resistor nearest the stack position. For the fan power, I use the Super-Chuffer II, and for the chuff generation I use the Chuff-Generator. This combo gives you four chuffs/rev, great looking chuffing, smoke at idle, Rule-17 lighting control, and automatic cab light control. You can also wire in ground lights as the Chuff-Generator has provision for automatically switching them. Ground lights are on until about 10 scale-MPH, then they go off.