I'm sorry. The labels in your schematic are just too small to see. Since the switch is off by itself and is only connected by labels it is very hard to determine what it is you are trying to do or if you have done it correctly.
When you say "for ftdi vcc" do you mean the VCC power going into the FTDI chip or do you mean the VCC power being provided to the serial connector???
It looks like FTDI VCC is connected straight to USB power. The switch seems to select between regulated 5V and something else but it isn't clear where the power is going because I can't read the label on that pin.
If you want to switch the FTDI VCC input between USB power and regulated Vin power you can use the Diecimila schematic which uses a movable jumper to do exactly that:http://www.arduino.cc/en/uploads/Main/Arduino-Diecimila-schematic.pdf