OK, here's how you can test the switch.
First, get a digital multi-meter. Borrow one from a friend, or you can pick one up at Sears or Radio Shack or somewhere like that for fairly cheap. If you can't get access to one, just take the switch into your local parts store. Someone in there should have one they will let you use for the 30 seconds this test will take.
Unhook the switch from the wires. This makes sure you are only reading the resistance of the switch, not components in the car.
Measure the resistance between the contacts with the switch "off". The reading should be infinate (or at least really high).
Next, place the switch in the "on" position. Your reading should drop to zero, or nearly zero.
if your switch behaved as I described, it is fine, look elsewhere for your problem. The two types of problems you might encounter with the switch are: 1) always infinate resisatance or 2) always no resistance. If I am understanding your symptoms right, it sounds like you would have no resistance, which would effectively turn the switch into s straight wire.
hth
Brian