As "fcwilt said, go to the Digitrax site and read and study all the documents on block detection and signals. That is the only way to understand what you will need and how to setup your layout.
Yes, LocoNet is proprietary to Digitrax. I'm not sure if or what other systems will work with it.
The LocoNet is a communications link that runs to all plug-in panels used for the throttles, stationary decoders, the command station, and computer interface (Locobuffer II or equiv., if a computer is used). For the signals, the BDL-168 and the SE8 also connects to the Loconet, sending their information to each other and the interface and then to the computer program.
The Loconet cable is very much like your home telephone "wire" with the exception that it is six conductor instead of eight. Sometimes you can find it locally, but you can order any length from Tony's Trains at a very reasonable price.
The cable used for the signals is a flat
ribbon wire, eight conductor, and runs from the SE8 driver board to the signal location. I used the Digitrax terminal strips to interface the cable to the tiny wires of the signal head. I also purchased this cable from Tony's at a much lower price than Digitrax.
All of the above is very general, but as you dig into other information and decide to go forward, I will be more than happy to help you where I can on this thread. (I haven't a clue on any system other than Digitrax)
BTW: how large of a layout (#of blocks) are we talking about. One BDL168 block detector will detect 16 blocks and one SE8 will drive 32 signal heads.
