I am not the best guy to answer this but maybe I can get a discussion going. First off, what kind of track are you using? This answer goes in the category of there is no such thing as too much information.
Second, I hope I am not being trivial, but you will need a selection of insulator pins or an insulator track section. I am not too sure about the second since I don't use FasTrack hence the reason for the first question.
Next you say that you want to run conventional simultaneously. Sorry to say but you will need a second power source (variable or fixed output) and a second powermaster. One set will be the fixed 18 volts on the track for the TMCC or legacy locomotives and the other set will allow for a variable voltage for your conventional locomotives. Now thinking, it Mar be possible to run both powermaster from your one existing power source, but I will leave that answer to one smarter than me since it will depend on what the total current draw would be.
Now I would also suggest that you may want to invest in some Block Power Controllers. This would allow you connect the powermaster to any available block that you have. You can look on Lionel's website to see how these work. You will also find with some work on the internet that the street price for these units to be $100 per unit. The more blocks you have the more BPCs you will need. Each unit assuming two power sources to switch will control four blocks.
I now think I have given enough information to you for your consideration and ideas that others can react to. I will continue to monitor this thread to answer your anticipated questions and to see what other kick in as information.