raschemmel:
Forget your circuit completely and just tell us what your objective is.
Do NOT reference your schematic.
Simply simply what your components are and what your objective is.
I do not want to discuss your circuit schematic.
What the hell is with you? I thought you were being an ass in the quick shifter thread but this is over the line.
Try drawing the schematic again. FYI. you can't power the device that is switched from the device doing the switching (duh).
If you're going to duh someone, you need to be sure that you are the one that is correct, otherwise you just look stupid. Take another look.
Moving on to actually trying to help...
The function of this circuit is not explicitly stated. You do say it is meant to switch power sources, but you do not specify the conditions under which the switching will occur. I will proceed under the assumption that the relay is supposed to switch to USB power when it is connected, and default to battery power when it is not. Correct me if that is wrong.
I don't see any fault with the way the schematic is drawn, which means it's possibly a wiring error. You don't say whether you've done this test with the switching circuit powering anything. Disconnect everything else so that you are left with only the relay, battery, and USB source and then test if the power switches properly then. Use the continuity tester on your multimeter to make sure the things you want hooked up are properly wired to each other, and the things you don't want hooked up are not connected.
How much current does your relay require?