Short Hole_Switch Tutorial
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SWITCH_TYPE1

Enter 2 in the OCB of the switch to make this a reach in the hole
To give Lara the right grab animation use Wadmerger and the Switch Manager. In the OCB 2 menu of the switch manager select "Hole switch".

Enter 1 in the OCB of the item in the hole to make it a reach in the hole pick-up. Sometimes you have to turn puzzle_items so that Lara grab it. Just try!
If you want to trigger something when Lara picks up the item, just look up the manual and search for pickup trigger. 

Place the switch_type behind a new room (one square in length and height) and use Toogle_Opacity to avoid that you can look "behind the switch" when Lara turns near the switch_type. To see how it works open the settomb.prj which can be found in the maps file in the level editor. Search for Switch_Type1 to find the room where it is used. 

If you just want to trigger something, just use it as a normal switch and type "Switch" into the type and place the trigger of the switch and the trigger of the thing you want to trigger in front of the switch.