After a very long and frustrating weekend the problem is solved. I don't know if I heated one of the contacts too much or what, but on the inside of the five way switch, one of the metal arms was curved away from the wafer, of course causing lack of contact there. It was a very subtle problem, I had to take the switch apart twice before I caught it. I just bent the arm back toward the wafer side and reassembled the switch, now it's working great. I was afraid in my novice guitar wiring experience that I had omitted or miswired something, but everthing in the diagram was there. I almost wish I had forgotten a wire, would have been a lot easier to find than that warped contact!
