I am happy to report that through much trial and error, I have accomplished my mission of making some lights turn on off when they are supposed to.
I have the electronics and programming all figured out. Currrently I have a warning light for low vacuum, oil pressure, voltage and low fuel in left and/or right tanks. I am working on the physical interface now, and just need to figure out how to make the faceplate and printing. I think the marker lights are working too, but need to do more testing. I am confident that I know the process now though.
If anyone wants a copy of the project file so they do not have to reinvent the wheel, leave a comment and I will be happy to share via email.
I am currently using FSUIPC, FS2Phidgets 5 and a phidgets led64 card to make it happen. Will post pics when the housing is in place and working.
But for now, I feel like I am on the road to finishing something! Progress is very empowering.