Help Needed: Pulse Vu 2 Xbox 360 Controller Mod

[Epic Lavalamp]

So here's the deal... I decided to install a pulse VU 2 chip into a clear xbox 360 controller so I could have the blue led's inside fade or what have you to my liking. The only problem is that the switch to controll the modes seems to be malfuntioning. I gained some experience with the Pulse Vu 2X when I installed it successfully into my 360, but this is the first time I used a vu 2. (mainly b/c 2X's are impossible to find anywhere now'a'days...)

But basically,
I made my own switch w/ 10k resistor for the SW pad (Here is a schematic from sickmods: http://diy.sickmods.net/images/pulsevu-SW-button.png
Installed a toggle switch in place of a 0-3v standby source for the PO pad
Hooked the + pad of the vu 2 to the battery lead
Hooked the - pad of the vu 2 to the battery lead
Did not touch the AL or AR pads
Hooked the + leads from the LED's to the battery lead
And finally hooked all of the LED grounds to the VU pad

And after all of this I get some strange results... Instead of the lights flashing in binary to indicate that you are switching modes, the controller simply goes into one of said modes.
For instance, If I hold the SW button down long enough the controller will simply light up in the dim mode, or in the fading mode, depending on which way the PO toggle button is flipped. And, as you will see in the video, If I hold the button down for a particularly long time, the lights will turn on to full brightness when I release the button...

I'm pretty sure I have installed everything correctly, but I could have made a mistake somewhere down the line. I have contacted sickmods.net, but they have still not replied back. If anyone here knows what the problem could be, I would be very grateful.

As promised, here's the video: http://www.youtube.com/watch?v=B09ORd-f1hE" onclick="window.open(this.href);return false;
(I just uploaded it, so if it's bad quality it's youtube's fault)

PLEASE HALP