Not quite, you feed the 16VAC by two wires, this supply goes directly to a bridge rectifier, then a 5V regulator and onto the LED and to the motor circuit. (It does work perfectly on 12V DC despite Dapol's denial and mine is working just fine on a 9V PP3 battery). The other two wires connect to a switch contact, not any kind of return or power source, the switch contact needs to be made briefly (joining the two wires together) to make the signal run to the opposite position, a simple press to make push button is the simplest.
Yes
This is not to clear, the switch should not provide any power feed just connect the two wires briefly, ie a pulse. This triggers an electronic chip in the signal that runs the motor until it reaches the limit switch in its new position.
Yes it has a pair of limit switches, one for each direction of travel, these are simple make contacts soldered to the PCB, once triggered the motor runs until the limit switch in the new position makes and causes the chip to turn the motor off. The control chip has had all the identification markings removed so it is difficult to be certain of the circuit.
In MERG we have designed a replacement circuit board that will allow operation from a simple on/off switch so it will always be possible to set the signal to the desired position.
Regards
Keith