How do I update two 2-wire switches housed in a single box? Both switches are combination switch and PILOT light
It sounds like the old switches were hooked up using the bare copper grounding conductor as a grounded (neutral) conductor.  This is NOT the proper way to wire this switch. To wire the new switches properly, you'll have to install an additional wire between the switch and the load.
It sounds like you have a situation like this...

But what you need, is something like this...

About the Device
The device you're trying to install has 5 screw terminals. On one side it has 2 COMMON terminals, which are likely either black or brass in color.  This side also contains the GROUNDING terminal, which is likely green and located kind of off by itself.
On the other side of the device, there are two screw terminals. The first is the LOAD terminal, and is likely brass in color. The other terminal is the GROUNDED (neutral) terminal, and is probably silver in color.
COMMON
The COMMON terminals are used to supply power to the device.  It's typical for only one of the terminals to be connected, but possible that both can be used.
GROUNDING
The GROUNDING terminal is used to connect the device to the equipment grounding system.
LOAD
The LOAD terminal is used to supply power from the switch, to the light or other load that is being controlled by the switch.
GROUNDED
The GROUNDED terminal is used to complete the circuit so the pilot light can be illuminated.
Internally, the switch looks something like this...