yup! that works. wish i thought of it. the circle off to the side is the common.
there have been many varients of the 5 way switch
http://www.premierguitar.com/Magazine/Issue/2009/Apr/The_Anatomy_of_the_Stratocaster_5_way_Switch_Part_III.aspx
the lugs labeled as "A" in their diagrams are the commons for each pole
lug 3 goes to ground in the first pole, lug one goes to hot.
as far as tone controls you can either a.) use just one or b.) hook one to hot and one to the common on the first pole where the neck and bridge p/ups hook to, which may do something interesting in the series position. or c.) hook one to the hot and one to the middle pup, parallel wiring is brighter and having too tone pots in those positions will balance that a little.