There is a thread about that 6 months ago or so...
Chuck,
As we discussed last time, a relay is needed for each DZ-2500 for the STM2 to correctly indicate switch position after non-derailing or button activation of the switch machine. I'm was trying to get away from adding a separate DZ-1008 relay to make it work, that is why I asked Harvy if his program would correctly indicate switch position with a DZ-2500. Those relays add up.
As it turns out, Lionel is looking at releasing a replacement for the STM2 just for the DZ-2500 called the Custom Switch Machine 2 (CSM2). The CSM2 will be all you will need, no STM2 or relay. It will connect 7 DZ-2500s. Here is a picture of it they had at York:
They had an ERR DZ-2500 Breakout PCB between the CSM2 and DZ-2500 which surprised me because I got the impression ERR was dropping it. The B-PCB is not required but I may add it for a couple of reasons.
First, the CSM2 may not come out until later next year. Since I'm wiring the layout now, if I put in the B-PCB now than it will be just two wires to easily connect a CSM2 in the future (one from each DZ-2500, and one common).
Second, and more important, David of Lionel stated the B-PCB should isolate its DZ-2500 from the other machines so when one fails, it will not bring down all the other DZ-2500 in the circuit like it can now. No more lengthy troubleshooting to find the failed DZ-2500.