The install should be simple as the motorized car. I prefer using a function-only decoder for that (since, without the motor circuit it is less expensive). I also like to use the same brand decoder for both ends (but not required).
Programing of function-only decoders might be tricky since there is no motor load to present a load on the programming track.
Of course it has to have the same address as the motor end decoder. Also (depending on how the model's internal wiring is done) the "reverse" bit might have to be set in CV29, so the proper set of lights comes on for a given direction.
I wonder if you simply installed the decoder backwards? Doing that with 6-pin decoders does not harm them, but it does make them behave in a weird way.