Ok, just so I am being clear let me point out that I am not using the WS467 to control an outlet, i'm using it a hardwired lighting fixture. So I cannot plug a nightlight in to check it without installing an outlet in the light box. The light is not a lamp.
So it sounds like my issue is I need the XP33 or Decora to control this light?
Yes an XPS3 will work, as will a WS13A...any X10 switch for flourescent lights, low voltage lights (as yours are), inductive loads, etc. should work. The two wire wall switches WS467, WS12A, will not work (any X10 wall switch that says "INCANDESCENT LIGHTS ONLY" ).
If your lights say they are dimmer capable you could try a XPDI3 which would give you dimming.
All of the switches which are compatable with your low voltage lighting will need a neutral wire in the wall box.
If you do not have a neutral wire in your box, you could also use a wire in appliance module like the XPFM, work if you can find a way to wire it in at before the socket.