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you need to solder 1 wire to 1 side of the switch and the other one to the other wire :P
won't work with a dip switch and it won't work for direct contact with the fader unless you get a 4 pin (which enables you to connect pin1 and 2 together or pin 3 and 4)because the voltage changes on the speaker when it's on, and for the fader you need a certain amount of power and not a changing one)
Yeah... I'm not really getting your diagram. 'tis confusing.
well never let your the + or the - share !!with that i meanthe + from the speaker should NEVER be connected to the + of the fader (which is in your case)thesame counts for the -