The switches- I've switched between the three settings neck humbuckler, between and body humbuckler(i think thats what it's called) and I honestly can't tell the difference, is there suppose to be a different sound, all i notice is one is louder than the other.

Basically the one nearest to the fret board will give a more mid to low range sound and the one which is where the strings start will give a more brighter sound with mid to high range sounds being more pronounced. The middle position is using both back and front "humbuckers" give you everything at once..

I have a stratocaster-style guitar, so I have three single-coil pick-ups, and hence five positions to choose from. I usually play more to front if I am finger-picking or playing the same way I play on an acoustic (without distortion). When I have distortion on, I tend towards the back pickups... but whatever sounds right is generally right.