Following David K. Smith circuit (Thanks David), I was able to complete the staging control with one exception. His circuit work great for controlling switch machine and setting the routes, but I had a particular way I wanted the panel lights to work and with some experimenting I thought I had a solution. Upon installing everything and testing the unknown changes for LED's work for all track but one.
I have a solution but I will not be able to make these changes for awhile and will live with the current setup.
Here are the photos of the new power supply and diode matrix board with schematic (schematic shows planned changes)
First - David's power supply
New diode matrix board
Diode-matrix board schematic
Overall staging control Schematic (note track power relay control by a 12VDC wall wart supply)