You can understand most of basic electronics by relating it to plumbing.
Voltage = water pressure
Amperage = gallons of water
Diode = spring-loaded one-way valve
In order for the one-way valve (diode) to allow even a trickle of water (amperage) to flow, there are two conditions that must be met:
1. The water pressure (voltage) must be pushing in the right direction.
If it's pushing the wrong way, the valve will not allow water to flow. ("reverse bias" on the diode)
2. There has to be enough water pressure (voltage) to overcome the spring and open the valve, allowing water to flow. ("forward bias" on the diode)
I have a multimeter with a Diode setting, but how do I connect up the positive and negative lead to the arcade button,
what terminals do I attach the multimeter too, to check all is okay?
The LED socket connects to the two metal 0.250" "stirrup" tabs pointing vertically in this pic -- not the 3 metal tabs on the microswitch positioned diagonally.

- Set the multimeter to diode check
- Touch the black multimeter lead to the metal "stirrup" tab next to the black plastic tab (far in pic) and the red multimeter lead to the other metal "stirrup" tab. (near in pic)
- If the LED is oriented the right way, the multimeter will provide enough voltage to "forward bias" the diode and dimly light it.
- If the LED doesn't light, unplug the LED holder (white item in pic above), turn it 180 degrees, plug it back in to the socket, and test it again.
The multimeter doesn't provide enough current to brightly light the LED or electrocute you.

Scott