On the SPD-36500R controller I remember that there is only one relay for the reversing function, and no relay for the power switch function, so there would be no clicking sound when the key switch was turned on or off.
If you can hear the reverse relay clicking when the reverse switch is engaged that indicates that the power switch is connected correctly and working, as the reverse relay will not click when the power switch is off or not wired correctly.
The indicator wire connections are optional and do not need to be connected to anything in order for the controller to operate. The on/off switch should definitely not be connected to the indicator wires otherwise the controller might be damaged, as the indicator wires are designed for connecting to light bulbs only.
Since the motor is not operating here are the steps that we recommend taking to troubleshoot the problem.
Hopefully the problem will be discovered during these tests. If not then please let us know so we can offer further assistance.
Please let us know how it goes.
Our technician bench tests all of our SPD-36500R controllers before they are shipped out to make sure that they work, so the controller that you have is supposed to be working. However if you feel that it is not working then we would be glad to test the controller again to confirm if it works or not, and replace it if it is defective.
We will work with you until this gets resolved. Please let us know how it goes.