Okay I appreciate all the explanations, I do understand this drawing.
Will the already existing blue and yellow wires going from the base to the motor case be used for anything wiring it this way? I don't think so. I could use them as a pair of wires going from the board back to the switch. Then I only need to run 1 pair of wires from the switch back up to the base and then up to the motor.
Where can you buy a switch like this? Looks like something an auto parts store would carry.
