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I'm using a switch with a light up led to ground a circuit. I have a chassis ground wire where the power is and middle wire ran to circuit. If I put power on the side that says ground will the led light up when on or will it fry my circuit.
Okay... I don't entirely understand how you have these switches wired. Typically with switches that have LEDs, you have three pins. Two pins are the actual switched pins, the last is for the latter half of the LED circuit.
If you're using the switch to interrupt a positive voltage signal, the remaining LED pin should go to ground. If you're using the switch to interrupt a negative (or ground) signal, the LED pin should go to a positive voltage source.
If you have these wired incorrectly (such as having the chassis ground on the wrong pin) you can (and likely will) cause a short circuit, meaning popped fuses, burnt switches, or damage to the vehicle electronics, depending upon what is hooked up where.