does that LED really need 1A of current thats ALOT, i wouldn't power that from the arduino regulator but use another 3.5v high power regulator for it!!!! LM1117 series or somin (if u want to switch it using the arduino you will need a high current transistor as well!!)
I doubt the audio module draws much current so just run that straight from arduino regulator
the the general idea is have your switch input from the microcontroller held to ground using a 10k resistor or some thing, and have the switch between this input and +3.3v/5v so it gets pulled high when the switch is pressed.
never short your power rain straight to ground on your switch as u will reset all your ics lol