Joe, from what I can find, those DCC replacement switch machine controllers for the standard Kato Unitrack switch only work with DCC, since there is no external wiring. You assign them an address and then use your DCC controller to throw the switch. There is no feedback as to what position the switch is in or if the switch has indeed been thrown. I can't see how you would rig up a postion indicator since the switch has a dead frog and there would be no way to know the position of the points. You may want to read
http://www.wiringfordcc.com/switches.htm for a lot more information about switches and wiring than I can tell you.