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I have used the switchkat with little trouble but not wired like you are with a 17100 .......

there is more then just a reed switch in there becouse it has three wire hookups and the lgb system uses ac power for the switches so it could have routing dioides ......

if you go to here and look down a ways you will see how bit switch fixes it


they state

LGB 17100 Track contacts when used with BitSwitches
LGB 17100 LGB 17100
LGB track contacts are designed for AC
Half Wave operation and therefore for
DC operation used by the BitSwitch
Products the CENTER is connected to
the BitSwitch common or ground and
the IN side of the 17100 is connected to
the appropriate "TRIGGER" . This
method causes a small drop in DC
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