You're right, that switch is wired wrong, I didn't notice that!  Served me right for just picking a picture and not looking closely at it.  The switch controller is correct, so I get 50%.

Here's the illustration I should have used...

This post is helpful.  Additional question two years later though since I’m in the exact situation of the original poster:

What do I do with the track jumper?  A video from Lionel that I watched said to remove it.  I’m going to run power to this from the Accessories connections on the back of my transmitter.  I’m assuming I just run my ground to the Aux Gnd port and the hot wire to the Aux In port?

The jumper is there for powering the switch with the track power (center rail).  This can be a greater challenge when running trains in transformer control in that when moving the locomotive slow at low voltage the switches will also have low voltage.  Running in TMCC or Legacy environment with track voltage constant ~ 18 Volts the switches operate well with this voltage and the jumper. 

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