I have an 800XL with the same upgrade. Unfortunately, it and/or the computer is defective. The computer will nominally boot with the switch at either extreme, but is dead in the middle setting. In none of the settings do any of the special functions seem to be active. When switched down, the computer drops to a diagnostic menu with no drive attached. In the up position, it never shows the diagnostics.
Since all the part numbers are filed off, I don't know where to start in diagnosis. For starters, if someone could scan the manual for me, that would be greatly helpful. I dropped a note to Bob Puff, but he is not sure he has any anymore and definitely didn't have an electronic copy.
Um....post 9 in this thread will point you to what you are looking for.