Switch Illumination

I've got a custom switch from ch4x4 installed and would like to know how the switch illumination actually works before getting started, rather than by trial and error. I was able to find on TW that the illumination dimmer switch varies the resistance between each of the pins and ground as you rotate the dimmer wheel. One pin gets more resistance while the other gets less. Is this correct?

That would lead me to believe that for illumination, switches receive a constant input voltage and the brightness is only controlled by varying resistance. Is this correct?

If my understanding so far is correct, then I would hook the red2 wire (see below) to the appropriate power source (hot, ign, or other 12V) and the black to the appropriate pin from the dimmer switch? (Thereby connecting it to ground, but through a variable resistance)

Am I on the right track or way off?

 

You are correct. Use a nearby OEM switch. Green will be your Dash circuit (+), green with White stripe is your variable ground.

 

Thank you. I'm fairly new to messing around with wiring, so this gives me a lot of confidence.