Yes it can work with only two wires. This is fairly common.
Positive transducer lead to positive of power supply. Negative of power supply to negative side of "load" . Positive side of load to negative lead on transducer.
So essentially it is just a loop.
The load could be many things such as a plc controller a meter or readout of some type etc.
Last edited by bigrockk; 01/22/08 10:15 PM. Reason: To add more info