The switch does not seem to do anything!
I tested memory/CF/SD/HDD/internal buzzer/external sound with service menu "D+M".
It does not make any difference; regardless the position of the switch.
Rgds,
Stefan
Maybe a long shot, but the switch could be isolating the battery, allowing a hard reset without taking out the battery.Can you try to run the Zaurus while on battery only and then toggle the switch ?
If that is not it, maybe worth dismantling the Zaurus to see what it actually does, I am quite curious. There is a picture guide somewhere in this forum that shows all the steps.