I tend to have a pretty loose attitude towards this stuff (the reason a new power supply and CPU are on their way to my house after 4-mouse hack gone awry) , so hopefully someone can come along and correct me where I'm wrong.
I did a couple of Sidewinder hacks, and I wire them the same way that your picture shows, with 4 wires going to 2 pots. As I know it, the red and green wires are voltage and ground. The middle wire is where the information output comes from. So for your system including 2 pots, you can splice the power & grounds together, and have 4 wires in all returning to the sidewinder (or in the case of the original arcade machine, 4 wires to back to the PCB).