Oh...I'm thinking just like a regular switch, where if it's to the left it connects pins 1 and 2, and if it's to the right it connects pins 2 and 3 together. If it followed that then this wouldn't do anything, it would connect the 2 together but the led gnd is wired to only pin 3, so it would always be connected.
Of course I haven't dealt with Psps in foreverrrr so I guess I'm wrong >_>