By the way, why are you doing this? unless you're running DOS you shouldn't be offing the power to the PC without shutting down, and you'll have to switch something anyway so you might as well switch the dreamcast.
Also, I think you mistakenly made the VGA line run into the IPAC. Two things... I think I remember hearing posts about using diodes to make the double-connection to DC and IPAC work properly. And, if you simply plug your VGA output cables into a Y-adapter without a switch to switch between them, that could be bad. No problem if only one is on at any given time, but you might experience image quality loss of some kind, and if both are ever on at the same time you'd have two line-drivers trying to drive the same line at the same time (can be bad for the line-drivers).