No. Armature goes bottom right and put power where armature is now. Hook black control lead to power.
I still say there's something not right with those red wires, I'm pretty sure the control wire has to go from 1 to 3 and 2 to 4, not 1 to 2 and 3 to 4 like it is now.
Edit: yes I'm sure of it, those control wires are gonna short your shiz out.
Here's how it should work. Yellow wire will open up solenoid #1 and allow power to F2. Solenoid #2 stays closed and doesn't allow power to continue over to A (ground). Solenoid #3 should be paired with #1 and also open allowing ground (A) to go to F1.
When you go the other way on your switch solenoid #4 opens and allows power to F1, and #2 (paired with #4) opens to allow ground to F2.
Right now if you flipped the switch you'd open #1 and #2 allowing power to run through to ground. What's that burning smell anyways?