Sorry no diagram, but this is from the American Flyer service manual:
Install fiber pins in the sections of track that you will use as a block for the accessory.
Connect #707 track terminal to a track section in the insulated block.
From accessory:
White wire (#1 post) to the #707 terminal.
Green wire (#2 post) to control box.
Red wire (#4 post) to other connection on control box.
Yellow wire from control box to 15-18 volt post on transformer.
Black wire (#3 post) to base post of transformer.
Red button on control box will operate the cow and kill power to the block, stopping the train.
Green button on controller will return cow, and energize track again.
Larry