zxninja
This is a 10vdc-32vdc isolated input card.
Yes, you will need a separate power supply for your inputs(switches) and outputs(LED).
(How would the card be useful?) It would serve as a 10vdc-32vdc isolated input card, you can connect your inputs either Sourcing or Sinking.(Suggested Voltage is 24vdc)
The module receives its operating power from the backplane but the power that flows through your inputs and finally gets terminated on the module will need to be a separate power supply.
Depending on the specifications of your test box, you may be able to use the same 24vdc power supply for your inputs and outputs.
Make sure you receive the field wiring arm (1771-WN)with the module, the module is useless without it.
If you feel that you also need isolated outputs you may want to check for a 1771-OQ16 module as well.
Roger