Hard dog, look at it again, the black is coming straight from the power box (we assume) to the switch, and coming out as red. The white is also coming in straight from the power box (again, we have to assume) so it is wired correctly, presuming he has both wires, one on each bus, at the box. I do see why it is throwing you but i believe it is wired correctly, assuming that both the black (L1 let's call it) and the white (L2 let's call it) are coming in from the box. The switch is simply breaking one leg. the color does not matter.
As Leo says, and as I said, unless there is a long run of wire to the motor, the HP is the same. However a real long run will effect a 120V motor more significantly than a 240v (often errouneously referred to as 220v) motor, and that power loss will be more noticeable ina 120v motor.
Last edited by TexasTimbers; 12-20-2007 at 12:24 PM.