As mentioned, these allow you to run conventional engines with the Cab2. If you run only TMCC or Legacy, you do not technically need these (the DCS TIU has the capability built into the variably channels). Some folks use it as a way to connect power from the PowerHouse to the track without cutting off the PowerHouse's molex plug. Basically, using it as a very expensive TMCC Direct Lockon.
The PowerHouse's molex plug, on both 180 and the 135, fit both PowerMasters. The PowerMaster has one plug for one PowerHouse for a maximum of 180 watts to the track, while the PowerHouse360 has two plugs so two Powerhouses can be plugged into it to safely combine their outputs for 360 watts to the track.
If you are not using a PH135 or PH180 with the molex plug, but a different transformer, both the PowerHouse and PowerHouse360 need the same adapter plug for the molex connection. They look like these I got off a forum post from gunrunnerjohn. I use all PH180s.
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Both PowerMasters adjust the voltage from the transformer and produce a chopped sine wave. I don't remember, but I think it is best to use a transformer producing a smooth sine wave so you don't get a chopped sine wave being chopped again.
ADDED: See post below - I added the wrong picture so I deleted it.