On your new diagram if the bottom wire is hot then the light should only be on when the switch is closed (on). If your hot is connected to the middle pin then the light should be on when the switch is open (off) b/c it'd be in series with the machine, however you would then be switching your neutral wire when the switch closes and since it'd be going to the neutral from the outlet it'd then be the least path of resistance and not go through the light, so the light would be off now.