Re: Dual Battery Set up
If you have the VSR you don't have to mess with the switch trying to make sure you have both batteries charged. For example, you start your boat and switch to "both" on the way to your fishing spot. What happens if you forget to switch it back to #1 while you are running your bait tank all day. Both batteries could get discharged far enough that you won't be able to start your boat. Having the VSR and the switch is the way to go and is also the recommended set up by Blu Sea whose picture you used.
The only time you would ever need to switch to "both" would be when, for some reason, you couldn't start your boat from either battery by themselves.
The Blu Sea Switch that you have shown is different than most 1,2 both switches. When it is in the on position, it hooks #1 battery to the engine and #2 battery to the house circuits. When it is off it disconnects both batteries from their loads. The switch will have 4 terminals. In the combine it hooks everything together at once so you can start your engine off of both batteries just like the common 1,2 both switch.
A standard 1,2,both switch will have 3 terminals which are for connecting battery 1, battery 2 and a common terminal which would go to your starter solenoid.
If you don't have all your house loads separated from you engine, you want to go with the standard 1,2,both switch.