Jeff, that is the way I have been reading it works. Like above, it was posted on the internet so a certain amount of salt should be applied.
The electrical connector I will check on at lunch. It's sitting at home because we had some bad weather and the DD has traction control. Looking at your 1ab 2a picture it's just to the left of the throttle body.
The bypass solenoid I am seeing online is this
http://www.crateenginedepot.com/Ecot...17617C594.aspx
You can barely see the second port behind the filter.