Alan,
The circuit diagram you posted with the momentary toggle switch shows a connection on one side only. The Yellow and Green wires from the switch machine are hidden by writing along side the led's. Attached is a sketch that I used for DZ1000's and momentary toggle switch with led's. Remember you are dealing with switch activation power of 12VAC. You need a resistor for each led. The green and yellow wires are considered the Red side of the AC power. The black wire is considered the common. I made a small test assembly on a 4" x 8" piece of thin plywood to test the operation prior to installation. Hope this helps. This diagram uses R Right and L left off the DZ-1000.
Bruce