Starting at the beginning, I would say to stick with stranded wire, you make a reference to "bell wire" which means light gauge solid.
It's too easy to nick the wire when stripping and the rigid solid wire tends to break connections more than stranded.
I like using as heavy a gauge as I can in general to keep voltage losses to a minimum, but within a loco, I would go with 18 gauge, still heavy enough for good current handling but small enough to fit most connectors. Use this for track pickups, motor leads, i.e. where you have the most current.
For lighting I'd drop back to 20 or 22.... LEDs surely won't need anything heavy, but sometimes incandescent lamps will need the larger gauge, especially if there are long wires and/or you have lower voltage to start with.
Greg