Italeri 1/87 BR 41 Locomotive 

Yes, wheels and undercariage mechanism can move, but they are very fragile, some joints are very tight or very loose. But it can move.

Maybe, it is possible to move the wheels, but since most parts of the steering are casted in one, they have to be divided And them joined again by rivets, so they can move against each other. But you have to work very převislý! You can buy modells of this locomotive from manufactureres that build kits for modell railroaders. Most parts there are made from metall, so they are much more stabile and easy to build movable, but it is still a challenge to build them precisely.

Thank you, good luck with your build.